| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5089394 | Journal of Banking & Finance | 2013 | 15 Pages |
Abstract
⺠Novel model explains how bank behavior contributed to the financial crisis. ⺠Basel I accord and lower reserve requirements led to higher financial leverage. ⺠Banks achieved high profits through balance sheet growth and riskier mismatches. ⺠Reductions in reserve requirements enabled use of capital arbitrage strategies. ⺠Policy response to the crisis raises capital and liquidity requirements.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ricardo Cabral,