Quantifying the Impact of Higher Capital Requirements on the Swiss Economy

Artikel

So far the discussion in Switzerland about the social costs and benefits of higher capital requirements resulting from the new Basel III Accord and the Swiss Too Big To Fail legislation has been heavily qualitative. This paper provides a quantitative view and estimates the long-run costs and benefits of substantially higher capital requirements using empirical evidence on Swiss banks to assess both benefits and costs. The analysis yields two main conclusions. The long-run economic benefits of higher capital requirements are substantial for the Swiss economy leading to a significantly lower probability of banking crises and associated expected losses. In contrast the costs of higher capital requirements as reflected in increased lending spreads and potential output reductions are literally non-existent.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Swiss Journal of Economics and Statistics ; ISSN: 2235-6282 ; Volume: 149 ; Year: 2013 ; Issue: 3 ; Pages: 313-356 ; Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation
• Thema: capital regulation ; banks ; cost of equity ; banking crisis ; economic growth ; Modigliani-Miller

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Junge, Georg ; Kugler, Peter
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Heidelberg
• (wann): 2013

Weitere Informationen

• DOI: doi:10.1007/BF03399394
• Handle: http://hdl.handle.net/10419/186028
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ