Bank x Basel III (Cosimano and Hakura)

Bank behavior in response to Basel III: a cross-country analysis, by Thomas F. Cosimano and Dalia Hakura, published by IMF. “This paper investigates the impact of the new capital requirements introduced under the Basel III framework on bank lending rates and loan growth. The data preseted in the paper suggest that large banks would on average need to increase their equity-to-asset ratio by 1.3 percentage points under the Basel III framework.”