Impacts of the Basle Capital Standard on Japanese Banks' Behavior / Takatoshi Ito, Yuri Nagatake Sasaki.

Format:

Book

Author/Creator:

Ito, Takatoshi.

Contributor:

National Bureau of Economic Research.

Sasaki, Yuri Nagatake.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6730.

NBER working paper series no. w6730

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1998.

Summary:

This paper examines how the risk based capital standards, the so-called Basle Accord between 1990 and 1993. As the Japanese stock prices fell, banks' latent capital gains, which are part of tier II capital, became smaller. Empirical findings are consistent with a view that banks with lower capital ratios tended to issue more subordinated debts (tier II) and to reduce lending (risk assets).

Notes:

Print version record

September 1998.