Regulators have traditionally required banks to maintain capital-asset ratios of a certain level to ensure adequate net

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Regulators have traditionally required banks to maintain capital-asset ratios of a certain level to ensure adequate net worth based on the size and composition of the bank’s asset on its balance sheet. Why might such capital adequacy requirements not be effective?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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