The Wealth Effect of the Risk-Based Capital Regulation on the Commercial Banking Industry
Description:
The purpose of this study is to examine the wealth effect of the Risk-Based Capital (RBC) regulation on the U.S. commercial banking industry. The RBC plan was first proposed in January 1986, and its final form was announced on July 11, 1988. This plan resulted from dissatisfaction with the old capital regulation, which did not account for asset risk and off-balance sheet activities. The present study hypothesizes that the new regulation restricted bank optimal behavior and, therefore, adversely…
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Date:
August 1994
Creator:
Zoubi, Marwan M. Sharif (Marwan Mohd Sharif)
Partner:
UNT Libraries