From: Optimal equity capital requirements for large Swiss banks
Increase in LR | Linear regression (1) | No M-M effect (2) | ||
---|---|---|---|---|
Impact on WACC (RP = 5%) | Impact on WACC (RP = 10%) | Impact on WACC (RP = 5%) | Impact on WACC (RP = 10%) | |
Basel III Tier 1 Look-through | 0.030% | 0.032% | 0.055% | 0.060% |
Basel III CET1 Look-through | 0.038% | 0.042% | 0.071% | 0.077% |