Capital Requirements and Optimal Bank Portfolios: A Reexamination

Osterberg, William P.; Thomson, James B.

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Working Paper

Capital Requirements and Optimal Bank Portfolios: A Reexamination

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An examination of the impact of increased capital requirements on bank portfolio behavior, finding that although the variance of earnings and the incentive to increase leverage are reduced with risk- and leverage-related interest rates, the impact of increased capital requirements on portfolio behavior is generally ambiguous.

08.01.1988WP 88-06

Suggested Citation

Osterberg, William P., and James B. Thomson. 1988. “Capital Requirements and Optimal Bank Portfolios: A Reexamination.” Federal Reserve Bank of Cleveland, Working Paper No. 88-06.

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Capital Requirements and Optimal Bank Portfolios: A Reexamination

Suggested Citation

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