Research Article
Did Bank Capital Regulation Exacerbate the Subprime Mortgage Crisis?
Table 1
Summary of results for cyclicality of bank credit and capital under Basel I and II.
| | Bank capital | Loans | Loan rate |
| | Basel I (slack) | Increase (Section 3.1) | Increase (Section 3.2) | Increase (Section 3.2) | | Basel I (holding) | Increase (Section 3.3) | Unchanged (Section 3.3) | Increase (Section 3.3) | | Basel II (slack) | Undetermined (Section 4.1) | Increase (Section 4.2) | Increase (Section 4.2) | | Basel II (holding) | Undetermined (Section 4.3) | Increase (Section 4.3) | Undetermined (Section 4.3) |
|
|
