Behavior differ in the case of discretionary approach

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The dynamic provision policy was given by a formula imposed by the central bank. It could have been a discretionary approach (determined on a case by case basis by regulators). How would banks’ behavior differ in the case of a discretionary approach? What if the discretion belonged to the banks themselves?

Reference no: EM131095393

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Behavior differ in the case of discretionary approach : The dynamic provision policy was given by a formula imposed by the central bank. It could have been a discretionary approach (determined on a case by case basis by regulators). How would banks’ behavior differ in the case of a discretionary approach?..

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