Steady-state impact on cost of capital: estimates for changes in lending rates because of a one-percentage point increase in capital requirements (CET1)
| Study | Baker, M. and Wurgler, J. (2013) | BCBS (2010) | Kashyap, A. et al. (2010) | King, M.R. (2010) | Slovik, P. and Cournède, B. (2011) |
|---|---|---|---|---|---|
| Effect on lending rates (measured in basis points) | 6-9 | 13 | 2.5-4.5 | 15 | 14.4 |
| Modigliani and Miller assumption holds | Yes | No | Yes | No | No |
| Study | |||||
|---|---|---|---|---|---|
| Effect on lending rates (measured in basis points) | 6-9 | 13 | 2.5-4.5 | 15 | 14.4 |
| Modigliani and Miller assumption holds | Yes | No | Yes | No | No |
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