Journal of Banking & Finance Vol. 19 No. 3-4 1995

The role of capital in financial institutions

Allen N. Berger^1,2; Richard J. Herring³; Giorgio P. Szegö⁴

¹ Federal Reserve Board of Governors · ² Federal Reserve · ³ Wharton Financial Institutions Center, Philadelphia, PA 19104, USA · ⁴ Sapienza University of Rome

Abstract

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.

DOI

10.1016/0378-4266(95)00002-x

Volume

19

Issue

3-4

Pages

393-430

Language

en

Sources

openalex crossref

Cite

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