Basel agreement

Publication date: 19 Jan 2011 | Publication type: NIESR Discussion Paper | Authors: Barrell, R, Davis, P | JEL classification: G12, G21 | NIESR discussion paper number: 375
The consensus among financial regulators is that Tier 2 capital is inferior to Tier 1, both in terms of incentives for an ongoing bank and regarding the protection it offers in the case of failure. Some economists, while not denying the benefits of Tier 1, suggest that there may be benefits of...