Carolyn A. Wilkins - Latest

• Should Bank Capital Regulation Be Risk Sensitive?

  Staff working paper 2018-48 Toni Ahnert, James Chapman, Carolyn A. Wilkins

  We present a simple model to study the risk sensitivity of capital regulation. A banker funds investment with uninsured deposits and costly capital, where capital resolves a moral hazard problem in the banker’s choice of risk.

  Content Type(s): Staff research, Staff working papers JEL Code(s): G, G2, G21, G28 Research Theme(s): Financial system, Financial stability and systemic risk, Financial system regulation and oversight