How Basel III Changes Where Capital Sits: Nonbank Subsidiaries as Equity Reservoirs
This post is the second in a three-part series on how bank regulation interacts with the organizational structure of banking firms. The first post documented that nonbank subsidiaries inside bank holding companies (BHCs) are large, equity-rich "reservoirs," and that bank-level capital diverged sharply from consolidated capital after Basel III took effect in 2015. This post asks why, and traces…
We haven't written up this one. Liberty Street Economics has the full story — the link below goes straight to it.
Read the original at libertystreeteconomics.newyorkfed.org →
