The IRMA Community
Newsletters
Research IRM
Click a keyword to search titles using our InfoSci-OnDemand powered search:
|
Adjustment of Bank Capital Ratios: New Evidence From Commercial Banks
|
|
Author(s): Faisal Abbas (University of Central Punjab, Pakistan)
Copyright: 2023
Volume: 10
Issue: 1
Pages: 15
Source title:
International Journal of Corporate Finance and Accounting (IJCFA)
Editor(s)-in-Chief: Apostolos G. Christopoulos (Department of Business Administration, University of the Aegean, Greece), Constantin Zopounidis (School of Production Engineering and Management, Technical University of Crete, Greece & Audencia Business School, France) and Kyriaki Kosmidou (Aristotle University of Thessaloniki, Greece)
DOI: 10.4018/IJCFA.322552
Purchase
|
Abstract
This study explores the speed of adjustment of the capital ratio, regulatory ratio, and tier-I ratio of commercial banks in China by employing the GMM framework from 2006 to 2020. The empirical analysis reveals that banks adjust their regulatory ratio and tier-I ratio faster than the capital ratio of Chinses commercial banks. The findings report that the pace of regulatory ratio, a tier-I ratio of well-capitalized, highly liquid, and high growth banks are faster than under-capitalized, low liquid and low growth commercial banks in China. In addition, the speed of adjustment of regulatory ratio, the tier-I ratio is faster than capital ratio during the GFC-2008 in China. These findings suggest that the regulators may consider the heterogeneity in the speed of capital adjustment across different bank characteristics to formulate new bank regulations; particularly, when assessing and adjusting the specific capital requirements through Pillar II of the Basel III agreement.
Related Content
|
Mohammad Mizenur Rahaman, Adiba Rahman Bushra Chowdhury, Shamima Akter, Md. Zillur Rahman.
© 2023.
19 pages.
|
|
Syed Moudud-Ul-Huq, Shumaila Meer Perhiar.
© 2023.
14 pages.
|
|
Rui Manuel Dias, Nuno Teixeira, Pedro Pardal, Teresa Godinho.
© 2023.
17 pages.
|
|
Faisal Abbas.
© 2023.
15 pages.
|
|
Evangelos Chytis, Vasilia Liota, Spiridon Goumas, Aristidis Papagregoriou.
© 2022.
11 pages.
|
|
Ioannis G. Dokas.
© 2022.
16 pages.
|
|
Konstantinos Papageorgiou, Angelos Stavros Stavropoulos, Konstantinos Derleres, Konstantinos Milioris, Aristidis Papagrigoriou.
© 2022.
12 pages.
|
|
|