University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Quantifying and explaining parameter heterogeneity in the capital regulation-bank risk nexus

Delis, MD, Tran, KC and Tsionas, EG (2012) Quantifying and explaining parameter heterogeneity in the capital regulation-bank risk nexus Journal of Financial Stability, 8 (2). pp. 57-68.

Full text not available from this repository.

Abstract

By examining the impact of capital regulation on bank risk-taking using a local estimation technique, this paper attempts to quantify for the first time the heterogeneous response of banks towards this type of regulation in banking sectors of western-type economies. Subsequently, using this information, we examine the sources of heterogeneity. The findings suggest that the impact of capital regulation on bank risk is very heterogeneous across banks and the sources of this heterogeneity can be traced into both bank and industry characteristics, as well as into macroeconomic conditions. An important implication of the findings is that common capital regulatory umbrellas are not sufficient to promote financial stability, especially if they are not accompanied by supervisory effectiveness. On the basis of our findings, we contend that more focus should be placed on the actions needed to restrain excessive risk-taking of banks. © 2011 Elsevier B.V.

Item Type: Article
Authors :
NameEmailORCID
Delis, MDUNSPECIFIEDUNSPECIFIED
Tran, KCUNSPECIFIEDUNSPECIFIED
Tsionas, EGUNSPECIFIEDUNSPECIFIED
Date : 1 April 2012
Identification Number : https://doi.org/10.1016/j.jfs.2011.04.002
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:15
Last Modified : 16 May 2017 15:15
URI: http://epubs.surrey.ac.uk/id/eprint/818340

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year


Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800