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We study the efficiency of banking regulation under financial integration. Banks freely choose the jurisdiction where …
Persistent link: https://www.econbiz.de/10012993683
This paper examines the relationship between financial market regulation, country governance and efficiency of … scores and then Tobit estimation to analyze the impact of financial market regulations and country governance on bank …, government effectiveness is found to be positively related to bank efficiency. Consistent with economic theory, corruption is …
Persistent link: https://www.econbiz.de/10012994782
system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only …Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital …
Persistent link: https://www.econbiz.de/10013045939
Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …
Persistent link: https://www.econbiz.de/10012916682
expectations for NPLs are found to be effective in reducing banks' NPLs. The phase-in of the policies can temporarily reduce bank …
Persistent link: https://www.econbiz.de/10013286744
It is assumed that the awarding of a "systemic importance" seal by the regulator has a positive effect on the equity value of its holder. By employing an event study analysis on a new set of regulatory announcements, we find that financial market participants react to these announcements which...
Persistent link: https://www.econbiz.de/10013034358
The issue of bank dividend regulation has become highly controversial as the stress induced on bank capital during the … 2008 financial crisis and the covid pandemic created a demand for enhanced regulation and restrictions on bank dividend … stockholders and depositors, and to preserve the long-term solvency of the bank. Overall our study results show that despite an …
Persistent link: https://www.econbiz.de/10013245206
bank's solvency position: Low solvency banks report values of Tier 1 regulatory capital that exceed book equity. These …. The decreasing relationship between regulatory adjustments and bank solvency reflects the cost of deleveraging, a cost …
Persistent link: https://www.econbiz.de/10013063353
to promote bank soundness and sustained lending over the cycle. First, some evidence on bank dividends and earnings in … generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is … by means of less volatile bank retained earnings, (ii) they induce welfare gains associated to a Basel III-type of …
Persistent link: https://www.econbiz.de/10012024523
We present a simple model to study the risk sensitivity of capital regulation. A banker funds investment with uninsured … banks attract cheaper deposit funding and require less capital. With a noisy signal, risk-sensitive capital regulation can …
Persistent link: https://www.econbiz.de/10011903813