Abstract

http://ssrn.com/abstract=2225652
 
 

References (39)



 
 

Citations (21)



 
 

Footnotes (30)



 


 



Optimal Bank Capital


David Miles


The Bank of England; University of London - Imperial College Business School; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Jing Yang


Bank for International Settlements (BIS)

Gilberto Marcheggiano


affiliation not provided to SSRN

March 2013

The Economic Journal, Vol. 123, Issue 567, pp. 1-37, 2013

Abstract:     
This article reports estimates of the long‐run costs and benefits of having banks fund more of their assets with loss‐absorbing capital, or equity. We model how shifts in funding affect required rates of return and how costs are influenced by the tax system. We draw a clear distinction between costs to individual institutions (private costs) and overall economic (or social) costs. We find that the amount of equity capital that is likely to be desirable for banks to use is very much larger than banks have used in recent years and also higher than targets agreed under the Basel III framework.

Number of Pages in PDF File: 37

Accepted Paper Series





Date posted: February 27, 2013  

Suggested Citation

Miles, David and Yang, Jing and Marcheggiano, Gilberto, Optimal Bank Capital (March 2013). The Economic Journal, Vol. 123, Issue 567, pp. 1-37, 2013. Available at SSRN: http://ssrn.com/abstract=2225652 or http://dx.doi.org/10.1111/j.1468-0297.2012.02521.x

Contact Information

David Kenneth Miles
The Bank of England ( email )
Threadneedle Street
London EC2R 8AH
United Kingdom
University of London - Imperial College Business School ( email )
Exhibition Road
London SW7 2PG
United Kingdom
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Yang Jing
Bank for International Settlements (BIS) ( email )
Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland
Gilberto Marcheggiano
affiliation not provided to SSRN ( email )
No Address Available
Feedback to SSRN


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Downloads: 2
References:  39
Citations:  21
Footnotes:  30

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