# kaal:claim:2957645-015

**Claim.** Contingent capital is an automatic mechanism for increasing capital while reducing debt, and its long term benefit is lowering leverage.

**Type.** definitional  **Support.** asserted

**Source quote.**

> Contingent capital is an automatic mechanism for increasing capital while reducing debt with the long-term benefit of lowering leverage.

**From.** Kaal, *Dynamic Regulation via Contingent Capital* (2017), III. Contingent Capital, page 11

**Cite as.** Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645

**Verify.** sha256 of source PDF `250b10782a5ea5dece9235a7f711aee408feaf36f2e78e310d589b5ee6304be2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Dynamic%20Regulation%20via%20Contingent%20Capital.pdf

**Topics.** contingent-capital, systemic-risk

**Keywords.** contingent-capital, leverage, bank-capital, definitions

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