The Economy-wide Impacts of a Rise in the Capital Adequacy Ratios of Australian Banks
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Giesecke, James A 
ORCID: 0000-0002-7283-0551, Dixon, Peter and Rimmer, Maureen T
(2017)
The Economy-wide Impacts of a Rise in the Capital Adequacy Ratios of Australian Banks.
Economic Record, 93 (Supp S1).
16 - 37.
ISSN 0013-0249
Abstract
Regulators are requiring banks to raise additional equity to finance their activities. The benefits are understood in terms of reducing the risks of another financial crisis. But there are potential costs, including the potential for unanticipated macroeconomic impacts as banks reduce leverage. We use a financial computable general equilibrium model, containing disaggregated treatment of financial agents, to explore the economy-wide consequences of an increase in bank capital adequacy ratios. We find that the macroeconomic consequences are small.
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| Additional Information | "Special issue" |
| Item type | Article |
| URI | https://vuir.vu.edu.au/id/eprint/35372 |
| DOI | 10.1111/1475-4932.12341 |
| Official URL | http://onlinelibrary.wiley.com/doi/10.1111/ecor.20... |
| Funders | http://purl.org/au-research/grants/arc/DP140100476 |
| Subjects | Historical > FOR Classification > 1402 Applied Economics Historical > FOR Classification > 1502 Banking, Finance and Investment Historical > FOR Classification > 1503 Business and Management Historical > Faculty/School/Research Centre/Department > College of Business |
| Keywords | finance; macroeconomics; economics; financial system resilience |
| Citations in Scopus | 6 - View on Scopus |
| Download/View statistics | View download statistics for this item |
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