Series: IMF Working Papers
Author(s): Thomas Cosimano , and Dalia Hakura
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2011
Keywords: capital constraints, equity, capital requirements, nonperforming loans, interest expense, bank capital, Central Banking, And The Supply Of Money And Credit, financial Institutions And Services,
This paper investigates the impact of the new capital requirements introduced under the Basel III framework on bank lending rates and loan growth. Higher capital requirements, by raising banks' marginal cost of fun...