search query: @author Monro-Davies, R. / total: 2
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| Author: | Monro-Davies, R. |
| Title: | Capital ratios are only one step. |
| Journal: | Banker
1987 : MAY, VOL. 137:735, p. 55, 57-59 |
| Index terms: | INTERNATIONAL BANKS CAPITAL ASSETS REGULATIONS COMMERCIAL LAW COMPETITION |
| Language: | eng |
| Abstract: | In theory, differences in adequacy rules give rise to unfair advantages for banks with lower capital ratios: they can accept lower returns to achieve a given return on equity. It is questionable if banks apply return on equity as the basis of their pricing. However, rivals frequently complain on unfair acquisition of market share by French and mainly Japanese banks, using low ratios. The Japanese defend themselves by referring to their huge hidden reserves which renders their ratios much stronger. Because of differing traditions and structures, international harmonization will take decades, not years. |
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