Detail publikace

Regulation of Bank Capital and Behavior of Banks: Assessing the US and the EU-15 Region Banks in the 2000-2005 Period

Autor: doc. PhDr. Petr Teplý Ph.D., Milan Matejašák
Typ: IES Working Papers
Rok: 2007
Číslo: 23
ISSN / ISBN:
Publikováno v: IES Working Papers 2007/23
Místo vydání: Prague
Klíčová slova: banking regulation, Basel Capital Accord, capital adequacy, banks, simultaneous equations model
JEL kódy: C30, G18, G21
Citace: Matejašák, M., Teplý, P. (2007). “ Regulation of Bank Capital and Behavior of Banks: Assessing the US and the EU-15 Region Banks in the 2000-2005 Period. ” IES Working Paper 23/2007. IES FSV. Charles University.
Granty: 402/05/2123 (2005-2007) Efektivnost na finančních trzích a nová basilejská dohoda (NBCA)
Abstrakt: In recent years, regulators have increased their focus on the capital adequacy of banking institutions to enhance their stability, hence the stability of the whole financial system. The purpose of this paper is to assess and compare how American and European banks adjust their level of capital and portfolio risk under capital regulation, whether and how they react to constraints placed by the regulators. In order to do this, we estimate a modified version of the simultaneous equations model developed by Shrieves and Dahl. This model analyzes adjustments in capital and risk at banks when they approach the minimum regulatory capital level. The results indicate that regulatory requirements have the desired effect on bank behavior. Both American and European banks that are close to minimum requirements simultaneously increase their capital. In addition, the US banks decrease their portfolio risk taking.
Ke stažení: WP 2007_23 Teply

Partneři

ČSOB
Deloitte
McKinsey & Company

Sponzoři

CRIF