Ito, Takatoshi.
Impacts of the Basle Capital Standard on Japanese Banks' Behavior /
Takatoshi Ito, Yuri Nagatake Sasaki.
- Cambridge, Mass. National Bureau of Economic Research 1998.
- 1 online resource: illustrations (black and white);
- NBER working paper series no. w6730 .
- Working Paper Series (National Bureau of Economic Research) no. w6730. .
September 1998.
This paper examines how the risk based capital standards, the so-called Basle Accord between 1990 and 1993. As the Japanese stock prices fell, banks' latent capital gains, which are part of tier II capital, became smaller. Empirical findings are consistent with a view that banks with lower capital ratios tended to issue more subordinated debts (tier II) and to reduce lending (risk assets).
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