Banks and long term financing; Rules for stability and rules for economic development
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Abstract
The post-crisis regulation of banking system has the goal to protect the stability of banks, increasing significantly minimum capital requirements. The article analyzes the trade-off between capital regulation and the role of banks in financing the European economy. Banks remain the main source of finance for European enterprises and too high level of capital can reduce the role of credit as driver of growth of economy.
Keywords
- Regulation
- Long-Term Financing
- Bank Capital
