Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/23729
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dc.contributor.authorDietrich, Diemoen_US
dc.contributor.authorVollmer, Uween_US
dc.date.accessioned2009-01-30T12:01:12Z-
dc.date.available2009-01-30T12:01:12Z-
dc.date.issued2004en_US
dc.identifier.piurn:nbn:de:gbv:3:2-1555-
dc.identifier.urihttp://hdl.handle.net/10419/23729-
dc.description.abstractThis paper provides an explanation for the observation that banks hold on average a capital ratio in excess of regulatory requirements. We use a functional approach to banking based on Diamond and Rajan (2001) to demonstrate that banks can use capital ratios as a strategic tool for renegotiating loans with borrowers. As capital ratios affect the ability of banks to collect loans in a nonmonotonic way, a bank may be forced to exceed capital requirements. Moreover, high capital ratios may also constrain the amount a banker can borrow from investors. Consequently, the size of the banking sector may shrink.en_US
dc.language.isoengen_US
dc.publisher|aInstitut für Wirtschaftsforschung Halle (IWH) |cHalle (Saale)en_US
dc.relation.ispartofseries|aIWH Discussion Papers |x192en_US
dc.subject.jelG21
dc.subject.jelG28
dc.subject.ddc330
dc.subject.keywordincomplete contractsen_US
dc.subject.keywordminimum capital requirementsen_US
dc.subject.keywordbank capitalen_US
dc.subject.keyworddisintermediationen_US
dc.subject.keywordpro-cyclicalityen_US
dc.subject.stwBanken_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwEigenkapitalvorschriftenen_US
dc.subject.stwKreditgeschäften_US
dc.subject.stwUnvollständiger Vertragen_US
dc.subject.stwVerhandlungstheorieen_US
dc.subject.stwTheorieen_US
dc.titleWhy do banks hold capital in excess of regulatory requirements? A functional approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn391530119en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:iwhdps:iwh-192-

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