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Oct 1, 2024 · Consistent with the notion that regulatory capital that is not Tier 1 can be severely undervalued during times of distress and be less able to absorb shocks, we find that lower quality of regulatory capital is associated with higher bank risk-taking after controlling for various factors.
- Deniz Anginer, Ata Can Bertay, Robert Cull, Asli Demirgüç-Kunt, Davide S. Mare, Davide S. Mare
- 2021
Nov 27, 2020 · Just after the adapted Basel Accord was being implemented, the Asian financial crisis of 1997 showed the vulnerability of the international economy to cross-border bank loans and exchange risk, and the capital adequacy targets were adapted to include market risks, such as foreign exchange markets.
- Catherine R Schenk
- 2021
monitor the risks and financial position of banks and take action to guide, limit and price risk-taking by banks •For market discipline to work effectively market participants
This paper summarizes the latest update of the World Bank Bank Regulation and Supervision Survey. The paper explores and summarizes the evolution in bank capital regulations, capitalization of banks, market discipline, and supervisory power since the global financial crisis.
Aug 16, 2024 · By reducing the risk of future financial crises and the consequences of financial instability for the real economy, these reforms were an essential contribution to the G20’s primary objective of strong, sustainable and balanced growth. The priority reforms areas are set out below.
The regulatory reforms aimed to discourage bank risk-taking, limit bank failure and ensure soundness in the financial system. Nevertheless, whether increased capital regulation reduces bank risk-taking incentives is a much-debated area in banking literature.
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ABSTRACT: This study models the risks of commercial banks from the United States and developed, emerging, and frontier countries while controlling for bank- and country-specific variables within a panel framework. Bank risk is measured by both the traditional Z-score and a composite bank risk index proposed by the authors.
