Capital regulation and bank capital ratio – introduction of a new measurement. Issue 6 (2nd November 2021)

• Record Type: Journal Article
• Authors: Nguyen, Quang Thi Thieu; Gan, Christopher; Li, Zhaohua
• Is Part Of: Asia-Pacific journal of accounting & economics. Volume 28:Issue 6(2021)
• Page Start: 696
• Page End: 722
• Publication Date: 2021-11-02
• Subjects: Asia -- bank capital regulation -- Basel III -- capital ratio -- capital regulation index; Accounting -- Periodicals; Accounting -- Pacific Area -- Periodicals; Economics -- Periodicals; Pacific Area -- Economic conditions -- Periodicals; 657
• DOI: 10.1080/16081625.2019.1600419
• Languages: English
• ISSNs: 1608-1625

Abstract

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.