Impact of regulatory capital on European banks financial performance: A review of post global financial crisis

Oino, Isaiah

doi:10.1016/j.ribaf.2017.07.099

Cited by 33 publications

(12 citation statements)

References 11 publications

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“…The findings show that banking sector moved away from lending and advance commitments, which improve both their capital ratios and liquidity requirements. Oino (2018) investigates the impact of equity requirements on banking performance in Europe in post-crisis period. The findings show that capital ratios have increased in post-crisis period and there exists a negative association amid capital ratios and banking performance.…”

Section: Regulatory Capital Requirements Bank Risk-taking and Profitmentioning

confidence: 99%

“…Equity requirements (if binding) over the long-run may surpass the optimum capital level and suggest an opposite relationship between equity capital and bank value (Osborne et al, 2012). Oino (2018) investigates the impact of equity requirements on banking performance in Europe in post-crisis periods. The findings show that capital ratios increase in post-crisis periods and there is a negative association between capital ratios and banking performance.…”

Section: Introductionmentioning

confidence: 99%

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The nexus between Basel capital requirements, risk-taking and profitability: what about emerging economies?

Mujtaba

Akhtar

Ashfaq

et al. 2021

Economic Research-Ekonomska Istraživanja

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Section: Regulatory Capital Requirements Bank Risk-taking and Profitmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The nexus between Basel capital requirements, risk-taking and profitability: what about emerging economies?

Mujtaba

Akhtar

Ashfaq

et al. 2021

Economic Research-Ekonomska Istraživanja

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“…Some studies also focus on regulatory constraints and as a consequence ability of banks' to benefit from loans (hence reducing their performance). Again, here the results are mixed, and where for example, Oino (2018), Pelster, Irresberger, and Weiß (2018) and Coccorese and Girardone (2020) find that despite the increase in capital the expansion or growth has surpassed the unit change in capital (although the estimated impact is relatively weak for the later study). Contrary to the positive impact findings, Martynova, Ratnovski, and Vlahu (2020) poise that more profitable banks have higher risk-taking incentives, consistent with a weakening of bank capital regulation.…”

Section: Related Literaturementioning

confidence: 74%

Detecting zombie banks

Fiordelisi

Radic

Weyman‐Jones

2021

The European Journal of Finance

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Capital adequacy has become the main regulatory tool to achieve financial stability in the last twenty years. While most papers analysed the effect of capital adequacy on risk taking, there is a lack of evidence on the relationship between deleveraging and the return on equity capital. In this paper, we examine the evolution of the banking system in Japan over the period 2000-16, where the re-capitalization issue has already played a major role in policy making. Specifically, we estimate the shadow return on equity capital for both listed and unlisted banks by measuring the loans-funding-equity technology through the dual cost function, controlling for risk exposure and bad loans, and accounting for both the standard asset-based model of bank outputs, and incomebased model. Such an approach is likely to be important if the central bank permits banks with unsustainable balance sheets to continue in existence, and we refer to this as zombie banking. Overall, our results show that deleveraging did reduce the shadow return on equity for the City banks. We also find that that the presence of 'zombie' banks was concentrated and large among the smaller less diversified Regional Banks.

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“…Isaiah Oino demonstrated that banks diversified their income flows compared to the period prior to 2008. In terms of efficiency the ratio between costs and income after 2008 is higher than before the financial crisis [1].…”

Section: Introductionmentioning

confidence: 91%

Movement of the components of Russian financial capital

et al. 2021

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In the article there is revealed movement of financial capital components as a substance – the unity of diversity and the diversity of unity. Analysis of USD / RUB, RGBI, RTSI, SBER, IMOEX dynamics revealed speculative behavior of financial capital owners (IMOEX, USD / RUB, SBER) in relation to internal (RGBI) and external (RTSI) market. Analysis of importance of growth rates of GDP and its components revealed the state priority of GDP deflator regulation (Central Bank – inflation targeting) in the context of state revenues growth and, as a structural consequence, reduction of importance of growth rates of GDP and expenditures of households consumption against the background of increase of importance of commodities and services import. At the same time the quite high values of importance of growth rates of export of Russian commodities and services are identical to ones of such countries as Australia, Estonia and Columbia. Analysis of capital growth rates revealed fixation of interrelations between the Central Bank and financial corporations in the context of regulation of money supply and currency outside financial corporations and internal claims. These relations strengthen due to focusing of monetary and credit policy at “clear requirements to central government” and at inflation targeting. Research of the Russian financial capital components movement demonstrated corporate strengthening of interrelations between the Central Bank and the financial corporations and also defined the options for regulation of speculative behavior of financial capital owners.

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Impact of regulatory capital on European banks financial performance: A review of post global financial crisis

Cited by 33 publications

References 11 publications

The nexus between Basel capital requirements, risk-taking and profitability: what about emerging economies?

The nexus between Basel capital requirements, risk-taking and profitability: what about emerging economies?

Detecting zombie banks

Movement of the components of Russian financial capital

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