01882cas a2200265 a 4500 AALejournalIMF011734 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475502244 1018-5941 BD-DhAAL BD-DhAAL De Nicolo, Gianni. Capital Regulation, Liquidity Requirements and Taxation in a Dynamic Model of Banking / Gianni De Nicolo, Andrea Gamba, Marcella Lucchetta. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (53 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the impact of bank regulation and taxation in a dynamic model with banks exposed to credit and liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare, with their benefits turning into costs beyond a certain requirement threshold. By contrast, liquidity requirements reduce lending, efficiency and welfare significantly. The costs of high capital and liquidity requirements represent a lower bound on the benefits of these regulations in abating systemic risks. On taxation, corporate income taxes generate higher government revenues and entail lower efficiency and welfare costs than taxes on non-deposit liabilities.a. Mode of access: Internet Gamba, Andrea. Lucchetta, Marcella. IMF Working Papers; Working Paper ; No. 2012/072 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/072/001.2012.issue-072-en.xml IMF e-Library