Item

Capital regulation and bank capital ratio – introduction of a new measurement

Nguyen, QTT
Gan, Christopher
Li, Zhaohua
Date
2019-04-07
Type
Journal Article
Fields of Research
ANZSRC::35 Commerce, management, tourism and services , ANZSRC::38 Economics
Abstract
This study examines how capital regulation affects bank capital ratio in Asia during the period 2001–2015. Employing a new capital regulation measurement and System Generalized Method of Moments estimation, our study shows that: (i) Capital regulation has been effective in inducing banks to raise capital ratios; (ii) Bank capital ratios are affected by bank characteristics and macro-economic factors, similar to non-financial firms; (iii) The effects of bank characteristics and macro-economic factors vary across banks in developed, emerging and frontier countries, as well as countries with and without Basel Committee membership.
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© 2019 City University of Hong Kong and National Taiwan University
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