Bank capital and risk relationship during COVID-19: a cross-country evidence
Quang Thi Thieu Nguyen,
Dao Le Trang Anh,
Christopher Gan
Abstract:Purpose
This study aims to examine the relationship between bank capital and bank risk during COVID-19.
Design/methodology/approach
The study covers 20 countries during the period from Q4:2018 to Q4:2020, using different measurements of risk with consideration for the interrelationship between bank risk and bank capital and the impact of COVID-19.
Findings
The findings show that higher bank capital mitigates bank market risk and default risk; banks incur higher market risk during the COVID-19 period, and t… Show more
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