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The promise and challenges of bank capital reform

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  • Ronel Elul

Abstract

The failure and bailout of some prominent financial institutions amid the crisis of 2007-09, and the effect these events had on the economy as a whole, have led policymakers to rethink how the global financial system is regulated. These changes, commonly known as the Basel III Accords, will require banks to maintain more capital in reserve, hold higher-quality capital, and assign greater risk weights to certain types of assets.

Suggested Citation

  • Ronel Elul, 2013. "The promise and challenges of bank capital reform," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 23-30.
    • Handle: RePEc:fip:fedpbr:y:2013:i:q3:p:23-30
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    References listed on IDEAS

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    1. Rafael Repullo & Javier Suarez, 2013. "The Procyclical Effects of Bank Capital Regulation," The Review of Financial Studies, Society for Financial Studies, vol. 26(2), pages 452-490.
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    5. Allen, Linda & Jagtiani, Julapa & Landskroner, Yoram, 1996. "Interest rate risk subsidization in international capital standards," Journal of Economics and Business, Elsevier, vol. 48(3), pages 251-267, August.
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    Cited by:

    1. James DiSalvo & Ryan Johnston, 2016. "How Dodd–Frank affects small bank costs," Banking Trends, Federal Reserve Bank of Philadelphia, issue Q1, pages 1-6.
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    3. James DiSalvo & Ryan Johnston, 2016. "Banking trends: how Dodd–Frank affects small bank costs," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 1(1), pages 14-18, January.
    4. Daniel R. Sanches, 2016. "The Free-Banking Era: A Lesson for Today?," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 1(3), pages 9-14, July.

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    Keywords

    Bank capital - Law and legislation;

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