Search results for "Basel III"
showing 8 items of 8 documents
2013 ECONOMY MOMENTUM CHALLENGES FOR NEXT 10 YEARS
2013
Last 5 years of almost unprecedented financial market turmoil it s still generating comprehensive crisis theories, market paradigms and nevertheless unprecedented situations. The aim of this paper is to explain 2013 milestone momentum for new market rules and regulations implementation - Basel III. The expected immediate cushion factors as well the possible negative impact on financial markets is presented from financial institutions perspective. Finally, the paper seeks for an exploratory after 10 years scenario connected with imminent market evolution and tendencies.
Basel III: Countercyclical Capital Buffer Proposal-the Case of Baltics
2014
Abstract The objective of countercyclical capital buffer is to encourage banks to build up buffers in good times that can be drawn down in bad times. The aim of the report is to assess such decisions by banks derived from two approaches. The approaches are the aggregate credit-to-GDP ratio as well as credit growth. The approaches are implemented for Estonia, Latvia and Lithuania for the time period 2000–2012. The report compares two approaches and analyses their relevance to the Baltic states by testing the correlation between a growth in studied variables and a growth of corresponding gaps. Methods used in the empirical part of the report are econometric analysis as well as economic analys…
Capital Regulation with Heterogeneous Banks
2013
We provide a general equilibrium analysis of potential consequences from the introduction of a binding leverage ratio, as proposed in Basel III. If banks differ in their monitoring skills and their ability to successfully complete a risky investment project, a tighter leverage ratio does not only mitigate moral hazard arising from limited liability, but also carries an unintended consequence: Banks are not allowed to absorb the entire supply of debt if they cannot raise new equity, which induces agents with a lower monitoring skill to open a bank. This decreases the average ability of operating banks. We further show that rising heterogeneity in the banking sector increases this negative ef…
Risk committee complexity and liquidity risk in the European banking industry
2021
Abstract The present study aims to investigate how bank governance characteristics are related to liquidity risk by analysing board composition, gender, and the risk committee. A dynamic panel data model is employed on a sample of European banks during the period after the financial crisis (from 2011 to 2017). Furthermore, we collect information about the profiles of the directors on the boards of banks, thereby creating five categories of risk committee members. To address the endogeneity issue, a generalised method of moments two-step estimator is implemented. The findings highlight that the fundamental role of the risk committee adequately shields banks against general liquidity risks. M…
The geography of Spanish bank branches
2014
This article analyzes the determinants of bank branch location in Spain taking the role of geography explicitly into account. After a long period of intense territorial expansion, especially by savings banks, many of these firms are now involved in merger processes triggered off by the financial crisis, most of which entail the closing of many branches. However, given the contributions of this type of banks to limit financial exclusion, this process might exacerbate the consequences of the crisis for some disadvantaged social groups. Related problems such as new banking regulation initiatives (Basel III), or the current excess capacity in the sector add further relevance to this problem. We…
The relationship between credit ratings and asset liquidity: Evidence from Western European banks
2020
This study examines the role of asset liquidity in Western European banks’ credit rating downgrades and upgrades over the 2005–2017 period. The results suggest that changes in bank credit ratings have been more favorable for banks that have a liquid asset portfolio. Furthermore, asset liquidity has a stronger effect on the credit rating of banks that already have an illiquid asset portfolio. In contrast, the effect is significantly smaller or nonexistent for the most liquid banks. These results imply that the new liquidity regulation introduced by the Basel III requirements will improve the stability and hence decrease the fragility of the European banking sector. Furthermore, the benefits …
Banku saistību līmeņa samazināšanās procesa ietekme uz Latvijas tautsaimniecību
2015
2008. gada globālā ekonomiskā krīze vēlreiz apliecināja finanšu sistēmas ciešo saistību ar reālo ekonomiku, tāpēc tiek izstrādāti Basel III banku regulējošie nosacījumi, kuri paredz bankām uzturēt zemāku saistību līmeni, kas savukārt ietekmēs valstu tautsaimniecības. Bakalaura darba mērķis ir analizēt Latvijas komercbanku saistību līmeņa samazināšanās ietekmi uz Latvijas tautsaimniecību, lai raksturotu Basel III regulu iespējamo makroekonomisko ietekmi un izvirzītu priekšlikumus attiecīgajām institūcijām ar nolūku uzlabot makroprudenciālo uzraudzības politiku, kā arī lai izvirzīt priekšlikumus tālākai temata pētniecībai. Banku saistības tiek novērtētas izmantojot Basel III regulējošo nosacī…
Pankin pääomarakenne ja varainhankinta nykyisessä ja tulevassa pankkisääntelyssä
2017
Tämä tutkielma kokoaa yhteen pankkeja nykyisin velvoittavat pääomien määrään ja maksuvalmiuteen sekä rahoitukseen liittyvät sääntelyt. Tutkielman tavoitteena on saada vastaus kysymykseen: Miten pankin tulee huomioida pankkisääntely pääoman ja varainhankinnan rakenteessaan? Tutkielman alussa esitellään pankkitoimintaa yleisesti ja siihen liittyviä optimointiongelmia. Pankkien kannalta optimaalinen pääomarakenne poikkeaa sosiaalisesti optimaalisesta ja tätä varten pankkisääntelyä tarvitaan. Optimaalisimman tason määrittely on haastavaa, mutta sen on arvioitu olevan 15-20 % tasolla. Pääomarakenteella on vaikutusta pankin tuottavuuteen ja menestymisen mahdollisuuksiin. Pankkeja voidaan säännell…