The redistributive effects of bank capital regulation

• 成果类型: Article
• 署名作者: Carletti, Elena; Marquez, Robert; Petriconi, Silvio
• 署名单位: Bocconi University; University of California System; University of California Davis; Bocconi University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.12.002
• 发表日期: 2020
• 页码: 743-759
• 关键词: LIMITED MARKET PARTICIPATION; Bank capital structure; capital regulation; Investor returns

摘要

We present a general equilibrium model of banks' optimal capital structure where bankruptcy is costly and investors have heterogeneous endowments and incur a cost for participating in equity markets. We show that, besides its social benefits, capital regulation benefits bank shareholders when it resolves fire sales externalities but not when it acts as a tax on bank profits such as when used to control excessive leverage induced by deposit insurance. Furthermore, capital regulation widens the gap between the returns to bank shareholders and depositors and may reduce investments in projects in favor of storage. Published by Elsevier B.V.