Devereux, Michael (2013) Can taxes tame the banks? Capital structure responses to the post-crisis bank levies. In: 69th Annual Conference of the International Institute of Public Finance (IIPF): 'The Role of the State in Growth and Development', 22/08/2013-25/08/2013, Taormina, Sicily.Full text not available from this repository.
In the wake of the financial crisis, a number of countries have introduced Pigouvian levies on bank liabilities associated with systemic risk. We study how the levies have affected bank capital structure using a rich panel dataset for European banks. Our results suggest that the levies have caused an average increase in equity-asset ratios of around 1-1.5 percentage points driven by increases in stocks of equity rather than contractions of the balance. Our results also lend support to the theoretical prediction that levies induce banks to hold more risky assets when the regulatory capital requirement is binding.
|Item Type:||Conference or Workshop Item (Paper)|
|Centre:||Oxford University Centre for Business Taxation|
|Date Deposited:||16 Sep 2013 11:41|
|Last Modified:||23 Oct 2015 14:08|
Actions (login required)