| 来源类型 | Article
|
| 规范类型 | 评论
|
| The Federal Reserve must think twice about new capital buffers |
| Paul H. Kupiec
|
| 发表日期 | 2019-08-16
|
| 出版年 | 2019
|
| 语种 | 英语
|
| 摘要 | Basel III bank capital regulations were created in response to the 2008 financial crisis and prevent the failure of systemically important financial institutions. Basel III includes a discretionary countercyclical capital buffer that can be “fine tuned” by bank regulators. The countercyclical capital buffer has not been used in the United States, but the Federal Reserve is considering activating it. Proponents of the countercyclical capital buffer presume that it possesses near mystical power to control bank lending, a claim that lacks empirical support and belies common sense.
For believers, the countercyclical capital buffer is like a volume knob that controls bank lending. Turn the knob up and banks will slow lending. Turn the knob down, and banks will roll out new loans. The problem is that reality is not so simple. The countercyclical capital buffer applies to the largest institutions. The Federal Reserve can set the countercyclical capital buffer anywhere between 0 percent and 2.5 percent. The theory is that, by varying the countercyclical capital buffer rate, the Federal Reserve can tame the business cycle by controlling bank loan growth.
A countercyclical capital buffer of 0 percent is presumed to create incentives for banks to aggressively ramp up loan growth, while a countercyclical capital buffer of 2.5 percent is supposed to dampen bank lending. A lower countercyclical capital buffer takes immediate effect, while countercyclical capital buffer increases take hold 12 months after the announcement. There is scant evidence that supports the claim that changes in the countercyclical capital buffer will control bank lending.
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| 主题 | Economics
; Tax Reform
|
| 标签 | Bank regulation
; Federal Reserve
; Financial institutions
|
| URL | https://www.aei.org/articles/the-federal-reserve-must-think-twice-about-new-capital-buffers/
|
| 来源智库 | American Enterprise Institute (United States)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/266281
|
推荐引用方式
GB/T 7714 |
Paul H. Kupiec. The Federal Reserve must think twice about new capital buffers. 2019.
|
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