Basel

Publication date: 3 Feb 2016 | Publication type: National Institute Economic Review | External authors: Admati, A R | JEL classification: G21, G28, G32, G38, H81, K23 | Journal: National Institute Economic Review Issue 235 | Publisher: Sage Publications, London
Capital regulation is critical to address distortions and externalities from intense conflicts of interest in banking and from the failure of markets to counter incentives for recklessness. The approaches to capital regulation in Basel III and related proposals are based on flawed analyses of the...