The DOI matches its Crossref record; 6 of the 6 references it cites were found in a registry or an index.
The role of capital in financial institutions
Open accessAbstract
This introductory article examines the role of capital in financial institutions — why it is important, how market-generated capital ‘requiremenents’ differ from regulatory requirments and the form that regulatory requirements should take. Along the way, we examine historical trends in bank capital, problems in measuring capital, and some possible unintended consequences of capital requirements. Within this framework, we evaluate how the contributions to this special issue advance the literature and suggest topics for future research.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
Financial intermediation and delegated monitoring
Diamond, D. W. (1984) · The Review of Economic Studies · doi:10.2307/2297430 · Cited by 8,476
The Determination of Financial Structure: The Incentive‐Signalling Approach,
Ross, S. A. (1977) · The Bell Journal of Economics · doi:10.2307/3003485 · Cited by 4,168
Miller, M. H. (1977) · The Journal of Finance · doi:10.1111/j.1540-6261.1977.tb03267.x · Cited by 2,898
Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression
Bernanke, B. (1983) · National Bureau of Economic Research · doi:10.3386/w1054 · Cited by 2,173
Some evidence on the uniqueness of bank loans
James, C. (1987) · Journal of Financial Economics · doi:10.1016/0304-405x(87)90003-1 · Cited by 1,610
Research works printed but not linked: 84
- Acharya, 1988, A generalized econometric model and tests of a signalling hypothesis with two discrete signals, Journal of Finance, 43, 413, 10.2307/2328468 · DOI
- Acharya, 1989, Optimal bank reorganization policies and pricing of federal deposit insurance, Journal of Finance, 44, 1313, 10.1111/j.1540-6261.1989.tb02655.x · DOI
- Avery, 1988, Market discipline in regulating bank risk: new evidence from the capital markets, Journal of Money, Credit, and Banking, 20, 597, 10.2307/1992286 · DOI
- Avery, 1991, Loan commitments and bank risk exposure, Journal of Banking and Finance, 15, 173, 10.1016/0378-4266(91)90045-N · DOI
- Avery, 1991, Risk-based capital and deposit insurance reform, Journal of Banking and Finance, 15, 847, 10.1016/0378-4266(91)90103-S · DOI
- Barth, 1995, Fair value accounting: effects on banks' earnings volatility, regulatory capital, and value of contractual cash flows, Journal of Banking and Finance, 19, 577, 10.1016/0378-4266(94)00141-O · DOI
- Benston, 1995, Is the banking and payments system fragile?, Journal of Financial Services Research, 9, 10.1007/BF01051747 · DOI
- Benveniste, 1987, Securitization with recourse: an instrument that offers uninsured depositors sequential claims, Journal of Banking and Finance, 11, 403, 10.1016/0378-4266(87)90041-0 · DOI
- Berger, 1995, The relationship between capital and earnings in banking, Journal of Money, Credit, and Banking, 26
- Berger, 1994, The information content of bank examinations, Board of Governors of the Federal Reserve Finance and Economics Discussion Series (FEDS) paper 94-20
- Berger, 1989, The price-concentration relationship in banking, Review of Economics and Statistics, 71, 291, 10.2307/1926975 · DOI · Paper page
- Berger, 1991, The limitations of market value accounting and a more realistic alternative, Journal of Banking and Finance, 15, 753, 10.1016/0378-4266(91)90099-8 · DOI
- Berger, 1994, Did risk-based capital allocate bank credit and cause a ‘credit crunch’ in the U.S.?, Journal of Money, Credit, and Banking, 26, 585, 10.2307/2077994 · DOI · Paper page
- Bernanke, 1992, The federal funds rate and the channels of monetary transmission, American Economic Review, 82, 901
- Bernanke, 1991, The credit crunch, Brookings Papers on Economics Activity, 2, 205, 10.2307/2534592 · DOI · Paper page
- Bhattacharya, 1993, Contemporary banking theory, Journal of Financial Intermediation, 3, 2, 10.1006/jfin.1993.1001 · DOI · Paper page
- Black, 1978, An Approach to the Regulation of Bank Holding Companies, Journal of Business, 51, 379, 10.1086/296005 · DOI
- Bradley, 1991, Risk weights, risk-based capital and deposit insurance, Journal of Banking and Finance, 15, 875, 10.1016/0378-4266(91)90104-T · DOI
- Buser, 1981, Federal deposit insurance, regulatory policy, and optimal bank capital, Journal of Finance, 36, 51
- Carey, 1993, Snacking and smoothing: Gains trading of investment account securities by commercial banks, Board of Governors of the Federal Reserve working paper
- Carey, 1995, Partial market value accounting, bank capital volatility, and bank risk, Journal of Banking and Finance, 19, 607, 10.1016/0378-4266(94)00142-P · DOI
- Carey, 1993, The economics of private placements: a new look, Financial Instruments, Institutions, and Markets, 2
- Carlstrom, 1995, Loan sales as a response to market-based capital requirements, Journal of Banking and Finance, 19, 627, 10.1016/0378-4266(94)00144-R · DOI
- Chan, 1992, Is fairly priced deposit insurance possible?, Journal of Finance, 47, 227, 10.1111/j.1540-6261.1992.tb03984.x · DOI
- Cole, 1995, Separating the likelihood and timing of bank failure, Journal of Banking and Finance, 19, 10.1016/0378-4266(95)98952-M · DOI · Paper page
- Cook, 1994, Repudiation risk and restitution costs: toward understanding premiums on insured deposits, Journal of Money, Credit and Banking, 26, 439, 10.2307/2078011 · DOI
- Cordell, 1995, A market evaluation of the risk-based capital standards for the U.S. financial system, Journal of Banking and Finance, 19, 531, 10.1016/0378-4266(94)00138-S · DOI
- Cummins, 1995, Insolvency experience, risk-based capital and prompt corrective action in property-liability insurance, Journal of Banking and Finance, 19, 511, 10.1016/0378-4266(94)00136-Q · DOI
- Davies, 1991, The effects of closure policies on bank risk-taking, Journal of Banking and Finance, 15, 917, 10.1016/0378-4266(91)90106-V · DOI
- DeAngelo, 1980, Optimal capital structure under corporate and personal taxation, Journal of Financial Economics, 8, 5, 10.1016/0304-405X(80)90019-7 · DOI · Paper page
- Ellis, 1992, Does the debt market assess large banks risk? Time series evidence from money center CDS, Journal of Monetary Economics, 30, 481, 10.1016/0304-3932(92)90008-P · DOI
- Flannery, 1994, Debt maturity and the deadweight cost of leverage: Optimally financing banking firms, American Economic Review, 84, 320
- Flannery, 1994, Detecting bank market discipline using subordinated debenture yields: 1983–1991, University of Florida working paper
- Furlong, 1989, Capital regulation and bank risk-taking: a note, Journal of Banking and Finance, 13, 883, 10.1016/0378-4266(89)90008-3 · DOI
- Gale, 1985, Incentive compatible debt contracts: The one-period problem, Review of Economic Studies, 52, 647, 10.2307/2297737 · DOI · Paper page
- Garcia, 1995, Implementing FDICIA's mandatory closure rule, Journal of Banking and Finance, 19, 723, 10.1016/0378-4266(94)00153-T · DOI
- General Accounting Office, 1990, Report to the Congress on the Bank Insurance Fund, GAO/AFMD90-100
- Gennotte, 1991, Capital controls and bank risk, Journal of Banking and Finance, 15, 805, 10.1016/0378-4266(91)90101-Q · DOI · Paper page
- Gorton, 1990, Market discipline and bank subordinated debt, Journal of Money, Credit, and Banking, 22, 119, 10.2307/1992132 · DOI
- Hancock, 1993, Has there been a ‘capital crunch’ in banking? The effects on bank lending of real estate market conditions and bank capital shortfalls, Journal of Housing Economics, 3, 31, 10.1006/jhec.1993.1003 · DOI
- Hancock, 1994, Bank capital and the credit crunch: the roles of risk-weighted and unweighted capital regulations, AREUEA, 22, 59, 10.1111/1540-6229.00626 · DOI
- Hancock, 1994, Bank capital, loan delinquencies, and real estate lending, Journal of Housing Economics, 4, 121, 10.1006/jhec.1994.1004 · DOI
- Hancock, 1995, Bank capital shocks: Dynamic effects on securities, loans, and capital, Journal of Banking and Finance, 19, 661, 10.1016/0378-4266(94)00147-U · DOI
- Hannan, 1991, Bank commercial loan markets and the role of market structure: evidence from surveys of commercial lending, Journal of Banking and Finance, 15, 133, 10.1016/0378-4266(91)90042-K · DOI · Paper page
- Hannan, 1988, Bank insolvency risk and the market for large certificates of deposit, Journal of Money, Credit, and Banking, 20, 203, 10.2307/1992111 · DOI
- Harris, 1990, Capital structure and the informational role of debt, Journal of Finance, 45, 321, 10.1111/j.1540-6261.1990.tb03693.x · DOI · Paper page
- Harris, 1991, The theory of capital structure, Journal of Finance, 46, 297, 10.1111/j.1540-6261.1991.tb03753.x · DOI · Paper page
- Haubrich, 1993, Capital requirements and shifts in commercial bank portfolios, Federal Reserve Bank of Cleveland Economic Review, 29, 2
- Haugen, 1978, The insignificance of bankruptcy costs to the theory of optimal capital structure, Journal of Finance, 383, 10.1111/j.1540-6261.1978.tb04855.x · DOI · Paper page
- Herring, 1987, Growth opportunities and risk-taking by financial intermediaries, Journal of Finance, 42, 583
- Ibbotson, 1988, Initial public offerings, Journal of Applied Corporate Finance, 1, 10.1111/j.1745-6622.1988.tb00164.x · DOI · Paper page
- Jagtiani, 1995, The effect of bank capital requirements on bank off-balance sheet financial innovations, Journal of Banking and Finance, 19, 647, 10.1016/0378-4266(94)00145-S · DOI
- James, 1991, The losses realized in bank failures, Journal of Finance, 46, 1223, 10.1111/j.1540-6261.1991.tb04616.x · DOI · Paper page
- Jensen, 1986, Agency costs of free cash flow, corporate finance, and takeovers, American Economic Review, 76, 323
- Jensen, 1976, Theory of the firm: Managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 305, 10.1016/0304-405X(76)90026-X · DOI · Paper page
- John, 1995, Perspectives on bank capital regulation and managerial compensation, Journal of Banking and Finance, 19, 735, 10.1016/0378-4266(94)00156-W · DOI
- Jones, 1995, The implementation of prompt corrective action, Journal of Banking and Finance, 19, 491, 10.1016/0378-4266(94)00135-P · DOI
- Kane, 1995, Three paradigms for the role of capitalization requirements in insured financial institutions, Journal of Banking and Finance, 19, 431, 10.1016/0378-4266(94)00132-M · DOI
- Kaufman, 1994, Bank contagion: a review of the theory and evidence, Journal of Financial Services Research, 8, 123, 10.1007/BF01053812 · DOI · Paper page
- Kaufman, 1995, FDICIA and bank capital, Journal of Banking and Finance, 19, 10.1016/0378-4266(94)00152-S · DOI
- Keeley, 1990, A reexamination of mean-variance analysis of bank capital regulation, Journal of Banking and Finance, 14, 69, 10.1016/0378-4266(90)90036-2 · DOI · Paper page
- Keeton, 1988, Substitutes and complements in bank risk-taking and the effectiveness of regulation, Federal Reserve Bank of Kansas City working paper
- Kim, 1988, Risk in banking and capital regulation, Journal of Finance, 43, 1219, 10.1111/j.1540-6261.1988.tb03966.x · DOI · Paper page
- Koehn, 1980, Regulation of bank capital and portfolio risk, Journal of Finance, 43, 1235, 10.1111/j.1540-6261.1980.tb02206.x · DOI
- Kwan, 1995, An analysis of inefficiencies in banking, Journal of Banking and Finance, 19, 733, 10.1016/0378-4266(94)00155-V · DOI
- Lane, 1986, An application of the Cox proportional hazards model to bank failure, Journal of Banking and Finance, 10, 511, 10.1016/S0378-4266(86)80003-6 · DOI · Paper page
- Leland, 1977, Information asymmetries, financial structure and financial intermediation, Journal of Finance, 32, 371, 10.2307/2326770 · DOI · Paper page
- Merton, 1995, Financial innovation and the management and regulation of financial institutions, Journal of Banking and Finance, 19, 461, 10.1016/0378-4266(94)00133-N · DOI
- Miller, 1995, Do the M&M propositions apply to banks?, Journal of Banking and Finance, 19, 483, 10.1016/0378-4266(94)00134-O · DOI
- Modigliani, 1958, The cost of capital, corporation finance, and the theory of investment, American Economic Review, 261
- Myers, 1977, Determinants of corporate borrowing, Journal of Financial Economics, 147, 10.1016/0304-405X(77)90015-0 · DOI · Paper page
- Peek, 1994, Bank real estate lending and the New England capital crunch, AREUEA, 22, 33, 10.1111/1540-6229.00625 · DOI
- Peek, 1995, The capital crunch: neither a borrower nor a lender be, Journal of Money, Credit and Banking, 27, 10.2307/2077739 · DOI · Paper page
- Peek, 1995, Bank regulation and the credit crunch, Journal of Banking and Finance, 19, 679, 10.1016/0378-4266(94)00148-V · DOI · Paper page
- Ronn, 1986, Pricing risk-adjusted deposit insurance: an options-based model, Journal of Finance, 41, 871
- Ross, 1987, Finance, Vol. 2, 322
- Ross, 1989, Institutional markets, financial marketing, and financial innovation, Journal of Finance, 44, 541, 10.1111/j.1540-6261.1989.tb04377.x · DOI · Paper page
- Santomero, 1977, Determining an optimal capital standard for the banking industry, Journal of Finance, 32, 1267, 10.1111/j.1540-6261.1977.tb03325.x · DOI
- Szegö, 1995, Risk-based capital in the European Economic Community, Journal of Banking and Finance, 19, 727, 10.1016/0378-4266(94)00154-U · DOI
- Thakor, 1995, Capital requirements, loan renegotiation, and the borrower's choice of financing source, Journal of Banking and Finance, 19, 693, 10.1016/0378-4266(94)00149-W · DOI
- Thomson, 1991, Predicting bank failures in the 1980s, Federal Reserve Bank of Cleveland Economic Review, 27, 9
- Townsend, 1979, Optimal contracts and competitive with costly state verification, Journal of Economic Theory, 21, 265, 10.1016/0022-0531(79)90031-0 · DOI · Paper page
- Wall, 1987, The effect of capital adequacy guidelines on large bank holding companies, Journal of Banking and Finance, 11, 581, 10.1016/0378-4266(87)90004-5 · DOI
- Wall, 1995, Bank holding company capital targets in the early 1990s: the regulators versus the markets, Journal of Banking and Finance, 19, 563, 10.1016/0378-4266(94)00139-T · DOI
Cited by
Financial technology and the future of banking
Broby, D. (2021) · Financial Innovation · doi:10.1186/s40854-021-00264-y · Cited by 259
The changing role of central banks
Goodhart, C. A. E. (2011) · Financial History Review · doi:10.1017/s0968565011000096 · Cited by 230
Lessons from the Great American Real Estate Boom and Bust of the 1920s
White, E. (2009) · National Bureau of Economic Research · doi:10.3386/w15573 · Cited by 110
Metadata
- Authors
- Berger, A. N., Herring, R. J., & Szegö, G. P.
- Venue
- Journal of Banking & Finance
- Publisher
- Elsevier BV
- Published
- 1995-06
- Volume
- 19
- Issue
- 3-4
- Pages
- 393-430
- ISSN
- 0378-4266 (ISSN-L)
- OpenAlex
- W1977847404
- Cited by
- 980
- References
- 6
- FWCI
- 26.84
- Type
- journal article
- Language
- en
- Open access
- hybrid
- Licence
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- www.elsevier.com/legal/tdmrep-license (tdm)
- creativecommons.org/licenses/by-nc-nd/4.0/ (vor, 1687 d)
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.