Maurin, Laurent; Toivanen, Mervi - In: Journal of Banking and Financial Economics 1 (2015) 3, pp. 113-129
This paper estimates euro area banks’ internal target capital ratios and investigates whether banks’ adjustment to the … banks and country-specific macro-variables, a partial adjustment model is estimated in a panel context. The results indicate …, first, that an increase in the riskiness of banks’ balance sheets positively influences banks’ target capital ratios. On the …