Publication

In relation to the Basel III international regulatory framework, in the United States, Congress mandated enhanced bank capital requirements as part of financial sector reform in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The author argues that the call for higher capital requirements on the banking system could arguably translate into more expensive bank credit for borrowers or even decline. Whether higher capital requirements would result in a reduction of overall lending and systemic risk, however, is unclear.