Publication:
Cyclical Effects of Bank Capital Requirements with Imperfect Credit Markets

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dc.contributor.authorAgénor, Pierre-Richard
dc.contributor.authorPereira da Silva, Luiz A.
dc.date.accessioned2012-03-19T19:12:49Z
dc.date.available2012-03-19T19:12:49Z
dc.date.issued2009-09-01
dc.description.abstractThis paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself depending on firms effective collateral. Basel I- and Basel II-type regulatory regimes are defined and a capital channel is introduced through a signaling effect of capital buffers on the cost of bank deposits. The macroeconomic effects of various shocks (a drop in output, an increase in the refinance rate, and a rise in the capital adequacy ratio) are analyzed, under both binding and nonbinding capital requirements. Factors affecting the procyclicality of each regime (defined in terms of the behavior of the risk premium) are also identified and policy implications are discussed.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091007120449
dc.identifier.doi10.1596/1813-9450-5067
dc.identifier.urihttps://hdl.handle.net/10986/4262
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research Working Paper ; No. 5067
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCELERATOR
dc.subjectACCELERATOR EFFECT
dc.subjectACCOUNTING
dc.subjectADVERSE CONSEQUENCES
dc.subjectADVERSE EFFECT
dc.subjectADVERSE SHOCKS
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE SUPPLY
dc.subjectALTERNATIVE FUNDING
dc.subjectALTERNATIVE REGIMES
dc.subjectAMOUNT OF LOANS
dc.subjectARBITRAGE
dc.subjectASSET PRICES
dc.subjectASSET QUALITY
dc.subjectASYMMETRIC INFORMATION
dc.subjectBACKED SECURITIES
dc.subjectBAD CREDIT
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBALANCE-SHEET
dc.subjectBANK ASSET
dc.subjectBANK ASSETS
dc.subjectBANK BEHAVIOR
dc.subjectBANK CAPITAL
dc.subjectBANK CREDIT
dc.subjectBANK DEBT
dc.subjectBANK DEPOSIT
dc.subjectBANK DEPOSITS
dc.subjectBANK FOR INTERNATIONAL SETTLEMENTS
dc.subjectBANK LENDING
dc.subjectBANK LIQUIDITY
dc.subjectBANK LOANS
dc.subjectBANK OF CANADA
dc.subjectBANK OF ENGLAND
dc.subjectBANK REGULATION
dc.subjectBANK REGULATIONS
dc.subjectBANKRUPTCY
dc.subjectBANKS
dc.subjectBILL
dc.subjectBILLS
dc.subjectBONDS
dc.subjectBOOK VALUE
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBORROWING COSTS
dc.subjectBUFFER
dc.subjectBUFFERS
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL BASE
dc.subjectCAPITAL LOANS
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REGULATION
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL STANDARDS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKING
dc.subjectCLARITY
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANK ASSETS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL PAPER
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCORPORATE BONDS
dc.subjectCREDIT CRUNCH
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDIT RATIONING
dc.subjectCREDIT RISKS
dc.subjectCREDITS
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEBT CONTRACTS
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBTS
dc.subjectDEFAULT RISK
dc.subjectDEMAND FOR CREDIT
dc.subjectDEPOSIT GUARANTEES
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDERIVATIVE
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT MACROECONOMICS
dc.subjectDISPOSABLE INCOME
dc.subjectDISTORTIONS
dc.subjectDOMESTIC GOOD
dc.subjectDOWNWARD PRESSURE
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC ENVIRONMENT
dc.subjectECONOMIC POLICY
dc.subjectELASTICITY
dc.subjectELASTICITY OF OUTPUT
dc.subjectEMPLOYMENT
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM CONDITION
dc.subjectEQUILIBRIUM CONDITIONS
dc.subjectEQUITY CAPITAL
dc.subjectEXCESS DEMAND
dc.subjectEXCESS SUPPLY
dc.subjectEXOGENOUS SHOCK
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXPENDITURE
dc.subjectEXTERNAL FINANCE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL FRAGILITIES
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFUNDING SOURCES
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM ANALYSIS
dc.subjectGROWTH RATE
dc.subjectHOLDING
dc.subjectHOMOGENEOUS GOOD
dc.subjectHOUSEHOLD DEPOSITS
dc.subjectHOUSEHOLD WEALTH
dc.subjectHOUSEHOLDS
dc.subjectHOUSING
dc.subjectID
dc.subjectIMPACT ON PRICES
dc.subjectINADEQUATE DISCLOSURE
dc.subjectINCOME EFFECT
dc.subjectINDEXATION
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTMENT PURPOSES
dc.subjectLABOR COSTS
dc.subjectLEGAL SYSTEM
dc.subjectLEVEL OF INVESTMENT
dc.subjectLEVERAGE
dc.subjectLIABILITY
dc.subjectLIABILITY MANAGEMENT
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOAN
dc.subjectLOAN DEFAULT
dc.subjectLOAN DEMAND
dc.subjectMACROECONOMIC EFFECTS
dc.subjectMACROECONOMIC MODEL
dc.subjectMACROECONOMICS
dc.subjectMARGINAL COST
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET EQUILIBRIUM
dc.subjectMARKET RATES
dc.subjectMONETARY AUTHORITY
dc.subjectMONETARY ECONOMICS
dc.subjectMONETARY SHOCKS
dc.subjectMONETARY TRANSMISSION
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE MARKET
dc.subjectMORTGAGE-BACKED SECURITIES
dc.subjectMORTGAGES
dc.subjectNEGATIVE SUPPLY SHOCK
dc.subjectNET WORTH
dc.subjectNOMINAL WAGE
dc.subjectOPEN ECONOMIES
dc.subjectOPPORTUNITY COST
dc.subjectPENALTIES
dc.subjectPHYSICAL CAPITAL
dc.subjectPLEDGE COLLATERAL
dc.subjectPORTFOLIOS
dc.subjectPOSSIBILITY OF DEFAULT
dc.subjectPRICE HIKE
dc.subjectPRICE INCREASE
dc.subjectPRIVATE CONSUMPTION
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFIT MARGIN
dc.subjectPROPERTY RIGHTS
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectRATE OF INFLATION
dc.subjectREAL CONSUMPTION
dc.subjectREAL INVESTMENT
dc.subjectRECESSION
dc.subjectREGULATORY AUTHORITY
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REFORMS
dc.subjectREGULATORY REGIMES
dc.subjectREPAYMENT
dc.subjectRESERVE
dc.subjectRESERVE ADEQUACY
dc.subjectRESERVE REQUIREMENTS
dc.subjectRESERVES
dc.subjectRETAINED EARNINGS
dc.subjectRETURN
dc.subjectRETURN ON EQUITY
dc.subjectRISK AVERSE
dc.subjectRISK EXPOSURE
dc.subjectRISK MANAGEMENT
dc.subjectRISK PREMIUM
dc.subjectRISK TAKING
dc.subjectSECURITIES
dc.subjectSIGNALING
dc.subjectSOLVENCY
dc.subjectSUBSTITUTION EFFECT
dc.subjectSUPPLY CURVE
dc.subjectTERMS OF CREDIT
dc.subjectTOTAL CREDIT
dc.subjectTOTAL CURRENCY
dc.subjectTRANSMISSION MECHANISM
dc.subjectTRANSMISSION OF MONETARY POLICY
dc.subjectTRANSPARENCY
dc.subjectUNCERTAINTY
dc.subjectUNDERDEVELOPED CAPITAL MARKETS
dc.subjectUPWARD JUMP
dc.subjectUPWARD PRESSURE
dc.subjectVALUE OF COLLATERAL
dc.subjectVULNERABILITY TO SHOCKS
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWEIGHTS
dc.subjectWORKING CAPITAL
dc.subjectWRITEDOWNS
dc.titleCyclical Effects of Bank Capital Requirements with Imperfect Credit Marketsen
dspace.entity.typePublication
okr.crossref.titleCyclical Effects Of Bank Capital Requirements With Imperfect Credit Markets
okr.date.doiregistration2025-04-10T12:03:35.489061Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091007120449
okr.guid865901468338937880
okr.identifier.doi10.1596/1813-9450-5067
okr.identifier.externaldocumentum000158349_20091007120449
okr.identifier.internaldocumentum11174749
okr.identifier.reportWPS5067
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/10/07/000158349_20091007120449/Rendered/PDF/WPS5067.pdfen
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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