International Prudential Regulation, Regulatory Risk and Cost of Bank Capital
We define regulatory risk as regulation that leads to an increase in the cost of capital for a regulated firm. In a general equilibrium setting, scholars have shown that uniform increases in capital requirements lead to an increase in the cost of capital. We extend their model to show that when regu...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2008-02-01
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| Series: | International Journal of Banking and Finance |
| Online Access: | https://www.scienceopen.com/document?vid=9560f5cc-58bd-4696-b7b2-2fd42ee9c0f3 |