How Do Bank Capital and Capital Buffer Affect Risk: Empirical Evidence from Large US Commercial Banks

IF 1.7 Q3 BUSINESS, FINANCE

Journal of Central Banking Theory and Practice Pub Date : 2021-05-01 DOI:10.2478/jcbtp-2021-0016

Faisal Abbas, Z. Younas

引用次数: 11

Abstract

Abstract This research aims to investigate the influence of bank capital, risk-based capital and bank capital buffers on the behaviour of bank risk-taking by applying GMM on the data of US commercial banks ranges from 2002 to 2018. The findings show that bank capital has a positive influence on total risk. However, risk-based capital and capital buffer have a negative impact on total risk. In addition, the results showed that the relationship between bank asset risk and bank capital, risk-based capital and a capital buffer is negative in pre, amid and post-crisis periods. The findings also reveal that the result of bank capital, risk-based capital and a capital buffer is not similar in case of well, adequately, under, significantly under, and critically undercapitalized banks. Our conclusions have numerous implications for policymakers and regulators in the banking sector.

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银行资本和资本缓冲如何影响风险——来自美国大型商业银行的经验证据

摘要本研究旨在通过对2002年至2018年美国商业银行的数据应用GMM，研究银行资本、基于风险的资本和银行资本缓冲对银行风险承担行为的影响。研究结果表明，银行资本对总风险具有正向影响。然而，基于风险的资本和资本缓冲对总风险有负面影响。此外，研究结果表明，在危机前、危机中和危机后，银行资产风险与银行资本、基于风险的资本和资本缓冲之间的关系为负。研究结果还表明，在资本充足、充足、不足、严重不足和严重不足的银行中，银行资本、基于风险的资本和资本缓冲的结果并不相似。我们的结论对银行业的决策者和监管机构有许多启示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Central Banking Theory and Practice BUSINESS, FINANCE-

CiteScore

2.80

自引率

57.10%

发文量

审稿时长

7 weeks

期刊介绍： Journal of Central Banking Theory and Practice is a scientific journal dedicated to publishing quality papers and disseminating original, relevant and applicable economic research. Scientific and professional papers that are published in the Journal of Central Banking Theory and Practice cover theoretical and practical aspects of central banking, monetary policy, including the supervision issues, as well as banking and management in central banks. The purpose of the journal is to educate the general public about the key issues that the central bankers globally face, as well as about contemporary research and achievements in the field of central banking theory and practice.