This is why equity capital held by financial institutions typically is more than twice as expensive as debt capital and why these institutions try to minimize its use.

Investment banks, in particular, are known for their minimalist equity approach.

The best known tools for this are margin requirements and minimum capital requirements.

One of them is a reserve requirement on cross border flows successfully implemented in Chile, Colombia, and elsewhere or, even better, on cross border liabilities. Taxes on inflows can play a similar role, as can minimum stay periods for capital inflows.

Mutual and other private sector funds require minimum terms for investments, and such mandatory lock up periods should be applied to capital inflows as well.

The portion of capital inflows that is not re exported represents net capital inflows.

There are some international agreements, notably the Basel Accords on minimum capital requirements and there is also good cooperation among market regulators.

The capital requirements attached to that subsidiary would be more burdensome, with minimum Tier One capital set at 10 , compared to the new Basel 3 standard of 7 .

Initial capital

Surviving the Great Capital Flood

As above, firm value is enhanced when, and if, the return on capital exceeds the cost of capital.

The Art of Capital Flight

Damming Capital

The Capital Flow Conundrum

Capital flows and remittances

E. Financial capital and resilience

Advances from the Working Capital Fund

If no measures are taken to increase the minimum equity requirements for banks and other financial institutions, financial crises like the current one could recur.

Private capital, which accounts for more than 90 of capital flows to developing economies, will remain the dominant source of long term financing.

The Siren Song of Capital Controls

Investment and private flows

(o) Working Capital Fund

Brazil has been aggressive in terms of capital restrictions, twice increasing its tax on financial inflows.

But capital is flowing in from other countries as well.

South African firms have used their relatively lower cost of capital to invest in other African countries where capital markets were not developed.

But the rise would most likely be offset by capital outflows, as looser capital controls would enable savers to escape the financial crisis.

Despite the theoretical possibility of capital being sent over vast distances to other parts of the world, much capital remained local.

व श व क प ज क र ख फ र ट यर क ओर

Jacqueline Novogratz on patient capitalism

The reason lies in capital movements.

Finally, there is the path of public capital.

Raising capital is expensive.

The Temptation of China s Capital Account

List of tables

Before World War II, venture capital investments (originally known as development capital ) were primarily the domain of wealthy individuals and families.

Less investment will mean less capital deepening.

This capital has to be invested somewhere.

The mutual interaction between the incentive to minimize equity capital and the incentive to gamble in order to exploit the upside risks caused America s crisis.

Capital controls, whatever their benefits in terms of mitigating the risks associated with volatile capital flows, are costly in a variety of ways.

Equity interest the Equity interest, which shall take effect at the time the applicant applies for a contract for exploitation, shall include the following

Moreover, Li has called upon the banking sector to reinvigorate idle capital and allocate incremental capital more effectively.

Europe s Chimerical Capital Markets Union

Bank Regulation s Capital Mistake

Overexpenditure of small capitalization fees

Encouraging private capital flows and remittances