IMF paper finds regulation will not damage economy

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A working paper, published by the International Monetary Fund (IMF) on September 26, says banks will adapt to new regulation without pursuing drastic measures that would harm the wider economy.

The authors, Douglas Elliott, Suzanne Salloy and André Oliveira Santos, evaluated how regulatory reforms in Europe, Japan and the US will impact the credit provisions of financial institutions.

Higher capital requirements will generate operating costs for lenders, which the authors say will partly be

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