Capital Regulation and Bank Risk-Taking Behavior: Evidence from Pakistan
نویسندگان
چکیده
منابع مشابه
Bank Capital Regulation and Incentives for Risk-Taking
We analyse the incentive impact of bank capital regulation in a model with endogenous capital, assuming regulators randomly audit banks and require undercapitalised banks either to bear the fixed cost of new issue or to liquidate. Forward looking banks with sufficient franchise value maintain a buffer of capital in excess of the regulatory minimum. In our dynamic setting we show, amongst other ...
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Bank capital regulation seems to be today’s most accepted regulatory instrument. The reasoning is that limited liability and deposit insurance appear to give banks incentives for excessive risktaking. Capital requirements can alleviate this problem as banks are obliged to hold more capital which forces them to have more of their own funds at risk. But the theoretical literature has much more to...
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This study explores social capital and its relevance to bank risk taking across countries. Our empirical results show that the levels of bank risk taking are lower in countries with higher levels of social capital, and that the impact of social capital is mainly reflected by the reduced value of the standard deviation of return on assets. Moreover, the impact of social capital is found to be we...
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ژورنال
عنوان ژورنال: International Journal of Financial Studies
سال: 2016
ISSN: 2227-7072
DOI: 10.3390/ijfs4030016