Sucheta Dalal :Economic consequences of higher regulatory capital for banks
Sucheta Dalal

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Economic consequences of higher regulatory capital for banks  

June 27, 2014

Higher regulatory capital or leverage ratio would mean involuntary monetary tightening as it were!

 

VK Sharma

 

Pre-crisis, luxuriant supply of liquidity in an exceptionally low interest rate environment led banks to expand credit in any way they wanted, and inflate in the bargain the now infamous credit bubble, with all its cataclysmic consequences.

 

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-- Sucheta Dalal