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bank capital

Publication

Can bank capital adequacy changes amplify the business cycle in South Africa?

Foluso Akinsola and Sylvanus Ikhide
Financial globalisation and financial innovation have increased most banks’ appetite for risk and therefore engendered financial fragility in the financial system. This paper examines the relationship between regulatory bank capital adequacy and the business cycle in South Africa using Vector error...
Feb 2017
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Publication

The effectiveness of countercyclical capital requirements and contingent convertible capital: a dual approach to macroeconomic stability

Hylton Hollander
This paper studies the effectiveness of countercyclical capital requirements and contingent con vertible capital (CoCos) in limiting financial instability, and its associated influence on the real economy. To do this, I augment both features into a standard real business cycle framework with an...
Sep 2015
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Publication

Do Capital Requirements Affect Cost of Intermediation? Evidence from a Panel of South African Banks

Andrew Maredza
Since the 2007 sub-prime financial crisis, world bank capital ratios have increased. In this paper, we investigate the impact of increased bank capital requirements introduced under the Basel Accord framework on the costs of intermediation. We attempt to answer this central question by running...
Aug 2015
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Publication

The Equity Price Channel in a New-Keynesian DSGE Model with Financial Frictions and Banking

Hylton Hollander and Guangling Liu
This paper studies the role of the equity price channel in business cycle fluctuations, and highlights its systemic risk across all sectors of the economy. We develop a canonical New-Keynesian dynamic stochastic general equilibrium model with a tractable role for the equity market in banking,...
Jul 2013
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