Join us for this weeks Macroeconomics Research Seminar, Spring Term 2023.
Professor Frederic Malherbe from University College London will present this weeks Macroeconomics seminar.
Abstract
We propose a model for studying the international coordination of bank capital regulation under the principle of reciprocity. In such a regime countries compete for scarce bank equity capital. Raising capital requirements in a country may generate bank capital outflows as well as inflows. We pin down the condition for the sign of the capital flow and the associated externality, and highlight the implications for macroprudential regulation. Compared to collaboration, overshooting is likely: countries have an incentive to increase
Basel III’s Counter-Cyclical Capital Buffer too much in good times and cut it too much in bad times.
This seminar will be held on campus in the Economics Common Room at 4pm on Tuesday 21 March. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.
This event is part of the Macroeconomics Research Seminar Series.