Crunching the Recovery Bank strongCapitalstrong and the Role of Bank.pdfVIP

Crunching the Recovery: Bank Capital and the Role of Bank Credit Joe Peek and Eric S. Rosengren* Other papers presented at this conference have documented the substantial recent decline in real estate prices and the impact of this decline on financial institutions. This paper will take the decline in bank capital as a result of exposure to real estate as given, and address how banks have responded to their deteriorated financial condition. The paper will show that real estate losses, combined with increased regulatory scrutiny of bank capital, have resulted in substantial sh