Abstract

http://ssrn.com/abstract=1731882
 
 

References (14)



 
 

Citations (1)



 


 



The Leverage Ratio as a Bank Discipline Device


Clovis Rugemintwari


Université de Limoges - Department of Economics (LAPE)

November 1, 2010

Revue Economique, Forthcoming

Abstract:     
This paper investigates bank portfolio composition under Basel II where the amount of required capital is determined by bank’s own risk assessment. We particularly show that in presence of asymmetric information between the bank and the supervisor, it has incentives to understate its risk taking which could be curbed by the addition of the simple leverage ratio as suggested in Basel III.

Number of Pages in PDF File: 10

Keywords: Basel II, Basel III, Leverage Ratio, Portfolio Allocation, Information Asymmetries

JEL Classification: G21, G28, G32

Accepted Paper Series





Download This Paper

Date posted: December 30, 2010  

Suggested Citation

Rugemintwari, Clovis, The Leverage Ratio as a Bank Discipline Device (November 1, 2010). Revue Economique, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1731882

Contact Information

Clovis Rugemintwari (Contact Author)
Université de Limoges - Department of Economics (LAPE) ( email )
5, rue Félix Eboué
Limoges Cedex, 87031
France
HOME PAGE: http://www.unilim.fr/lape/staff/full-time/article/clovis-rugemintwari
Feedback to SSRN


Paper statistics
Abstract Views: 741
Downloads: 225
Download Rank: 80,216
References:  14
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.312 seconds