 |
English
|
正體中文
|
简体中文
|
Items with full text/Total items : 62819/95882 (66%)
Visitors : 3996475
Online Users : 618
|
|
|
Loading...
|
Please use this identifier to cite or link to this item:
https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/123691
|
| Title: | Capital: Sources of pre- and post-crisis performance and risk-taking |
| Authors: | Wu, Meng-Wen;Shen, Chung-Hua;Huang, Kuo-Jui |
| Keywords: | Capital adequacy ratio;Leverage ratio;Financial crisis;Basel III |
| Date: | 2022-06-17 |
| Issue Date: | 2023-04-28 19:06:28 (UTC+8) |
| Abstract: | Bank capital has been an important factor in protecting banks from large, unexpected negative shocks. As the 2008 financial crisis showed, some banks with a high capital adequacy ratio perform worse during a crisis, and thus Basel III has added the leverage ratio as a supplementary measurement. This study is the first to combine the two capital ratios to examine how the capital of banks in general affects their performance during the shock of a financial crisis, hence filling the gap in the literature on either CAR or LR, and verifying the effectiveness of the concept of Basel III. We classify banks into two types, weak-capital banks and strong-capital banks, and then compare their performance during the pre-crisis and crisis periods (2004-2009). Using 3,884 listed and non-listed banks across 34 OECD countries for the pre-crisis and crisis periods (2004-2009), we find during the crisis that weak-capital banks suffer more losses in terms of low ROE, ROA, non-interest income, and stock returns, and have higher risks in terms of insolvency and ROA volatility than do strong-capital banks. However, during the pre-crisis period, the former outperforms the latter and still exhibits higher risk. We argue that the different capital conditions may imply the excessive risk taking and different risk attitudes, thereby causing diverse results during the pre-crisis and crisis periods and implying the validity of regulation of the dual capital ratios. |
| Appears in Collections: | [Graduate Institute & Department of Banking and Finance] Proceeding
|
All items in 機構典藏 are protected by copyright, with all rights reserved.
|
