Other publications may include books, quarterly reviews, annual reports and economic bulletins from the ECB, PhD theses and Danmarks Nationalbank’s policies.
The Role of Capital in Banks
Banks play a distinct role in the economy and they are therefore subject to extensive regulation, including capital requirements as an important element. This article explains why special capital requirements for the banks are necessary and why the banks usually prefer to hold excess reserves. The expected implications of the new capital-adequacy rules to the banks are also considered.