Report finds higher capital requirements led to higher interest rates

10/14/2013 | Banker magazine (U.K.), The

The Bank for International Settlements released its quarterly review that examined how banks have responded to higher capital requirements since the financial crisis. The report found there is evidence to support the idea that higher capital requirements have led to higher interest rates, even though interest spreads are at historically low rates. The BIS report concluded that the transition to higher bank capital ratios has led to wider lending spreads.

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Banker magazine (U.K.), The

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