Macroprudential regulation and misallocation

In this paper, we study the macroeconomic effects of  banking capital requirements. We provide a theoretical explanation for why decreasing capital requirements may lead to lower average leverage ratio among banks. This counterintuitive result is an outcome of the general equilibrium effects on inte...

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Autores:
Hill, Enoch
Pérez Reyna, David Alejandro
Tipo de recurso:
Work document
Fecha de publicación:
2016
Institución:
Universidad de los Andes
Repositorio:
Séneca: repositorio Uniandes
Idioma:
eng
OAI Identifier:
oai:repositorio.uniandes.edu.co:1992/8662
Acceso en línea:
http://hdl.handle.net/1992/8662
Palabra clave:
Banking capital requirements
Misallocation
Capital bancario
Asignación de recursos
Tasas de interés
E44, G21, G28
Rights
openAccess
License
http://creativecommons.org/licenses/by-nc-nd/4.0/
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spelling Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Hill, Enoch2142348d-8a00-42fc-817a-206452075233500Pérez Reyna, David Alejandro266375002018-09-27T16:55:35Z2018-09-27T16:55:35Z20161657-5334http://hdl.handle.net/1992/86621657-719110.57784/1992/8662instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/In this paper, we study the macroeconomic effects of  banking capital requirements. We provide a theoretical explanation for why decreasing capital requirements may lead to lower average leverage ratio among banks. This counterintuitive result is an outcome of the general equilibrium effects on interest rates, which affects capital allocation across different types of banks. Additionally, we find that the optimal policy for capital requirements depends on the available equity in the banking sector. Countries with a relatively undeveloped financial sector should have a higher capital requirement. For countries in the middle the optimal policy is a relaxed capital requirement. Finally, countries with a large amount of domestic capital are unaffected by capital requirements.En este artículo estudiamos los efectos macroeconómicos de tener requerimientos de capital para los bancos. Explicamos teóricamente por qué disminuir los requerimientos de capital puede resultar en bancos menos apalancados. Este resultado contraintuitivo es consecuencia de efectos de equilibrio general sobre las tasas de interés, que afecta la asignación de capital de diferentes tipos de banco. Adicionalmente, encontramos que la política ´optima de requerimientos de capital depende del capital bancario disponible. Economías con un sector financiero relativamente subdesarrollado deberían tener mayores requerimientos de capital. Para economías con un nivel de desarrollo medio la política ´optima es tener requerimientos de capital bajos. Finalmente, las economías con una alta disponibilidad de capital bancario no se ven afectadas por los requerimientos de capital.35 páginasapplication/pdfengUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No. 25 Julio de 2016https://ideas.repec.org/p/col/000089/014974.htmlMacroprudential regulation and misallocationRegulación macroprudencial y asignación inadecuada de recursosDocumento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPBanking capital requirementsMisallocationCapital bancarioAsignación de recursosTasas de interésE44, G21, G28Facultad de EconomíaPublicationTEXTdcede2016-25.pdf.txtdcede2016-25.pdf.txtExtracted texttext/plain70215https://repositorio.uniandes.edu.co/bitstreams/9f5b9d00-7e2a-4d5c-9da2-25396d9382a5/downloadd9d1e2f87c106031fe6fbb145e86ef44MD54ORIGINALdcede2016-25.pdfdcede2016-25.pdfapplication/pdf574402https://repositorio.uniandes.edu.co/bitstreams/00f37324-68f6-4b42-9ef9-a5b3b153f739/downloadb345f7692b504214c1d13638c054994cMD51THUMBNAILdcede2016-25.pdf.jpgdcede2016-25.pdf.jpgIM Thumbnailimage/jpeg30369https://repositorio.uniandes.edu.co/bitstreams/d23d9079-aba2-4e5c-af5e-021ef8f7aba1/download998347e2e5aac8b755c3d355907f99d5MD551992/8662oai:repositorio.uniandes.edu.co:1992/86622024-06-04 15:48:39.325http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co
dc.title.none.fl_str_mv Macroprudential regulation and misallocation
dc.title.alternative.none.fl_str_mv Regulación macroprudencial y asignación inadecuada de recursos
title Macroprudential regulation and misallocation
spellingShingle Macroprudential regulation and misallocation
Banking capital requirements
Misallocation
Capital bancario
Asignación de recursos
Tasas de interés
E44, G21, G28
title_short Macroprudential regulation and misallocation
title_full Macroprudential regulation and misallocation
title_fullStr Macroprudential regulation and misallocation
title_full_unstemmed Macroprudential regulation and misallocation
title_sort Macroprudential regulation and misallocation
dc.creator.fl_str_mv Hill, Enoch
Pérez Reyna, David Alejandro
dc.contributor.author.none.fl_str_mv Hill, Enoch
Pérez Reyna, David Alejandro
dc.subject.keyword.none.fl_str_mv Banking capital requirements
Misallocation
topic Banking capital requirements
Misallocation
Capital bancario
Asignación de recursos
Tasas de interés
E44, G21, G28
dc.subject.armarc.none.fl_str_mv Capital bancario
Asignación de recursos
Tasas de interés
dc.subject.jel.none.fl_str_mv E44, G21, G28
description In this paper, we study the macroeconomic effects of  banking capital requirements. We provide a theoretical explanation for why decreasing capital requirements may lead to lower average leverage ratio among banks. This counterintuitive result is an outcome of the general equilibrium effects on interest rates, which affects capital allocation across different types of banks. Additionally, we find that the optimal policy for capital requirements depends on the available equity in the banking sector. Countries with a relatively undeveloped financial sector should have a higher capital requirement. For countries in the middle the optimal policy is a relaxed capital requirement. Finally, countries with a large amount of domestic capital are unaffected by capital requirements.
publishDate 2016
dc.date.issued.none.fl_str_mv 2016
dc.date.accessioned.none.fl_str_mv 2018-09-27T16:55:35Z
dc.date.available.none.fl_str_mv 2018-09-27T16:55:35Z
dc.type.spa.fl_str_mv Documento de trabajo
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dc.type.driver.spa.fl_str_mv info:eu-repo/semantics/workingPaper
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dc.identifier.doi.none.fl_str_mv 10.57784/1992/8662
dc.identifier.instname.spa.fl_str_mv instname:Universidad de los Andes
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identifier_str_mv 1657-5334
1657-7191
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instname:Universidad de los Andes
reponame:Repositorio Institucional Séneca
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url http://hdl.handle.net/1992/8662
dc.language.iso.none.fl_str_mv eng
language eng
dc.relation.ispartofseries.none.fl_str_mv Documentos CEDE No. 25 Julio de 2016
dc.relation.repec.spa.fl_str_mv https://ideas.repec.org/p/col/000089/014974.html
dc.rights.uri.*.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.accessrights.spa.fl_str_mv info:eu-repo/semantics/openAccess
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eu_rights_str_mv openAccess
dc.format.extent.none.fl_str_mv 35 páginas
dc.format.mimetype.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidad de los Andes, Facultad de Economía, CEDE
publisher.none.fl_str_mv Universidad de los Andes, Facultad de Economía, CEDE
institution Universidad de los Andes
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