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Capital Requirements Could Reduce Volatility, Says BIS

The Bank for International Settlements said higher capital requirements for banks during credit booms could limit growth and reduce volatility in the global economy by up to 20%, reports Bloomberg.

The Bank for International Settlements said higher capital requirements for banks during credit booms could limit growth and reduce volatility in the global economy by up to 20%. In a study released Thursday, the BIS stated that the elevated capital requirements during those boom periods “could have a more sizable dampening effect on output volatility” than capital required at other times.

Click here to read the story from Bloomberg.

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