The Research on the Effects of Bank Leverage and Capital Regulation

DOI

10.2991/978-94-6463-052-7_151How to use a DOI?

Keywords

leverage regulation; capital requirements; economic; covid-19; Basel II

Abstract

Since the 2008 financial crisis, regulation of the financial sector has been strengthened, including the establishment of strict standards for leverage regulation. At present, the global regulatory policy is gradually improved and developed under the Basel III framework. Basel III establishes a combination of microprudential and macroprudential financial regulatory models, including higher capital requirements for banks and globally consistent regulatory standards for liquidity and leverage. One of the most important implements is the complementarity of the Tier 1 leverage ratio and the risk-weighted capital leverage ratio. In addition, jurisdictions have set leverage ratios in more detail, such as the supplementary leverage ratio in the U.S. With globalization efforts, systemic risk has been somewhat reduced and financial markets have developed more maturely. Unpredictably, the ongoing epidemic, the outbreak of the Ukraine war, and the continuing high inflation make regulatory policy challenged. Moreover, the expansion of shadow banking, the rise of cryptocurrencies, and changes in payment methods still need to be tackled. However, the urgent issue that needs research is whether the existing regulatory framework is adequate to handle the challenges. And there are indications that the regulatory policy needs to be reformed.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jingyi Peng
PY  - 2022
DA  - 2022/12/27
TI  - The Research on the Effects of Bank Leverage and Capital Regulation
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 1360
EP  - 1365
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_151
DO  - 10.2991/978-94-6463-052-7_151
ID  - Peng2022
ER  -