A paper (“Are risk-based capital requirements detrimental to corporate lending? Evidence from Europe”) co-authored by Giacomo Nocera, Associate professor at the Institute of Finance Audencia Business School, with Brunella Bruno and Andrea Resti (both at Bocconi University) has been included in the Centre for Economic Policy Research (CEPR) Discussion Paper series. The CEPR is a network of over 700 researchers based mainly in universities throughout Europe, who collaborate through the Centre in research and its dissemination. The Centre’s goal is to promote research excellence and policy relevance in European economics.
The paper is about the unintended consequences of capital regulation of banks as it explores the main drivers of the differences in regulatory capital requirements across European banks and aims at assessing the impact of capital regulation on the way banks allocated funds in 2008-2014 (a period of extraordinary strain for European banks, due to the subsequence of two crisis episodes, the global banking crisis and the euro sovereign debt crisis).