Objective
Prudential regulations of banks are viewed as instruments to prohibit banks from investing in risky projects, and thus protect banking system from the problems discussed above. To this end, several mechanisms are used by the central banking authorities. Two popular instruments are minimum capital requirements and deposit rate ceilings.
Higher capital implies higher losses for banks' shareholders in the event of default, and consequently less incentives for involvement in high risk activities. Recent phenomenon of bank failures in the developed as well as in the emerging economies called for the use of more stringent regulatory responses as seen in the New Basel Capital Accord (2001). In this project, we seek to focus on the impact of the tightening of capital standards on the behaviour of commercial banks towards risk while making investment decisions.
The main goal of this project is to examine the impact of higher capital standards on bank behaviour in the context of the European banking system. We would like to study the relationships between capital standards and prudent bank behaviour when the banks compete for depositors. The project focuses on studying prudential regulations of banks in the presence of regulatory authority and competing banks in a general (competitive) equilibrium framework.
Fields of science (EuroSciVoc)
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CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP6-2002-MOBILITY-5
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Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Coordinator
Belgium
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.