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- The Right Balance for Banks - Theory and Evidence on Optimal Capital Requirementd
The Right Balance for Banks - Theory and Evidence on Optimal Capital Requirementd
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William R. Cline analyzes whether reforms of capital requirements for banks have gone far enough. He calculates how much higher bank capital reduces the risk of banking crises. This study also challenges the recent "too much finance" literature, which holds that in advanced countries banking sectors are already too large and are curbing growth.
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