Download Bank Capital and Risk-Taking: The Impact of Capital by Stéphanie M. Stolz PDF

By Stéphanie M. Stolz

The year-long consultations on Basel II replicate the foreign acclaim for capital specifications as a regulatory device. but, the effect of capital necessities on banks' habit isn't really totally understood. the purpose of this learn is to give a contribution to this figuring out through answering the subsequent questions: How do banks modify capital and possibility after a rise in capital requisites? How do banks modify their regulatory capital buffer over the company cycle? And, what's the impression of banks' constitution price at the regulatory capital buffer?

Show description

Read or Download Bank Capital and Risk-Taking: The Impact of Capital Regulation, Charter Value, and the Business Cycle PDF

Best microeconomics books

Pharmaceutical Manufacturers: An International Directory

This foreign listing of pharmaceutical brands contains 1,046 agencies in 50 international locations. they're prepared alphabetically by way of state and corporate identify. as well as identify and handle, different info comparable to phone and fax quantity, and key group of workers also are indexed, the place to be had. finishing the listing, is an inventory of 124 agreement brands in 19 nations of moral and/or non-prescription prescribed drugs.

Ceramics and Ceramic Composites: Materialographic Preparation

Ceramics and ceramic composites are actually utilized in just about all parts of expertise and feature strength for even larger and extra common purposes. To make this a fact, it truly is more and more essential to comprehend the microstructure of the cloth and its dating with houses and function.

Microeconometrics in Business Management

This ebook introduces the appliance of microeconometric equipment for modelling numerous elements of monetary job for small to giant measurement firms, utilizing tools which are in accordance with either time-series and cross-section ways. the knowledge bought from utilizing those anticipated types can then be used to notify enterprise judgements that enhance the potency of operations and making plans.

Additional info for Bank Capital and Risk-Taking: The Impact of Capital Regulation, Charter Value, and the Business Cycle

Sample text

However, firm insolvencies turn out to be insignificant throughout all of my specifications. Hence, I do not show these regression results. Apart from firm insolvencies, I also experiment with GDP. However, the results with respect to capital and risk adjustments do not change when including GDP in the regression. Further, Chapter 4 treats the impact of GDP on banks' capital buffers, capital, and risk in extension. Hence, the results are not quoted in this chapter. Last but not least, I have to find a criterion to distinguish between banks with high capital buffers and banks with low capital buffers.

However, the importance attached to capital requirements in the supervision of banks raises several questions: How do banks react to capital requirements? Do they increase capital when their capital ratio approaches the regulatory minimum? Do they also adjust risk and how are these adjustments interrelated? And finally, Do minimum capital requirements also have an effect on well-capitalized banks? A growing branch of the theoretical literature has tried to assess the effects of minimum capital requirements on banks' capital and asset risk.

H4: Banks with low capital buffers adjust risk faster than banks with high capital buffers. 6 Hypotheses on ... 2 27 Capital and Risk Adjustments over the Business Cycle In the Milne and Whalley (2001) model, the optimum capital buffer depends positively on asset risk. If banks have a higher asset risk, they need a higher capital buffer to be fully insured against a violation of the regulatory minimum. As loans are traditionally banks' most important asset category, credit risk is one of the main drivers of asset risk.

Download PDF sample

Rated 4.35 of 5 – based on 33 votes