Who Actually Pays for a Safer Bank? The Corporate Borrower, Mostly
A bank raises capital, and the first question is usually whether borrowers will pay for it. It sounds like a simple question with a simple answer — either capital rules are free lunches for financial stability, or they are a hidden tax on anyone who borrows money. Updated research from the Bank of England suggests the truth sits uncomfortably between those two stories, and in a more specific place than either camp usually admits.






