Affiliation:
1. School of Accountancy & Finance , University of Lahore , Pakistan
2. National University of Sciences and Technology (NUST) , NUST Business School , Islamabad, Pakistan
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.
Subject
Strategy and Management,Economics and Econometrics,Finance
Cited by
11 articles.
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