Capital requirements do NOT reduce the moral-hazard problem of deposit insurance.
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Q6: Subordinated notes and debentures issued by banks
Q7: Losses on defaulted loans that were anticipated
Q8: The provision for loan losses account can
Q9: Today, banks with assets more than $500
Q10: For failed banks, long-term debt serves the
Q12: Because deposit insurance may create incentives for
Q13: Regulatory forebearance means that regulators bear the
Q14: Capital requirements balance safety and soundness considerations
Q15: Historical evidence on bank failures in the
Q16: Uniform capital requirements in the early 1980s
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