Some bank managers argue that a bank's access to capital is restricted because the capital requirements imposed
Question:
Some bank managers argue that a bank's access to capital is restricted because the capital requirements imposed by regulators in the U.S. are too high. Write a short essay that can offer logical insight for why high capital requirements may restrict a bank's access to capital. Also, offer some insight for why high capital requirements for all banks in the U.S. can actually allow the banks easier access to capital. Which of the arguments do you believe?
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If capital requirements are high the banks degree of financial leve...View the full answer
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