Cost-Benefit Analysis – Best Approach To Regulate BanksMani
The “norming” mentality led to weak regulations and an under-capitalized banking sector, and cost-benefit analysis is the best approach to regulate banks, says Chicago Law School.
Eric A. Posner of the University of Chicago published a report in September with the title: “How Do Bank Regulators Determine Capital Adequacy Requirements?” He notes it has never been clear how regulators determine the minimum capital-asset ratio.
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