BIS research finds capital requirements had minor impact on bank lending
Research published by the Bank for International Settlements (BIS) on September 15 finds that banks responded to higher capital requirements under Basel III largely by retaining earnings, not by cutting lending.
In How have banks adjusted to higher capital requirements?, author Benjamin Cohen uses a sample of 82 global banks to assess their strategies for complying with the Basel III capital requirements over the period 2009-12. Cohen finds that the "bulk of the adjustment" took place through
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