A dealer monitors price movements on an electronic board at the investors gallery in the Amman Stock Exchange August 27, 2012. (Reuters/Ali Jarekji)
The Practical Incentive Effects of Different Approaches to Capital Requirements
November 15, 2013,
Douglas Elliott examines potential bank behavior in response to changing capital requirements, discussing how such regulations would effect what types of business banks choose, how much they charge their customers and how different ways of measuring capital adequacy provide very different incentives to banks.