Artikel
Bank capital buffer and economic growth: New insights from the US banking sector
This research intends to explore the relationship between capital buffer, nominator effect, denominator effect, and economic growth for large insured commercial banks of the USA. The study applied a two-step system Generalized Method of Moment (GMM) framework by taking the unique and comprehensive dataset over the period extending from 2002 to 2018. The research found a countercyclical relationship between a capital buffer and economic growth. In the case of well-capitalized banks, this relationship is more critical than adequately capitalized banks. In the case of low-liquid banks, counter-cyclicality is more significant than high-liquid banks. The results also suggest the pro-cyclical relationship between nominator, denominator, and economic growth. The results remain consistent and robust with the use of the tier-one capital buffer ratio. The findings have implications for regulators to incorporate the counter-cyclicality between the capital buffer and economic growth, while formulating the policies for capital requirements in the future.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 14 ; Year: 2021 ; Issue: 4 ; Pages: 1-13 ; Basel: MDPI
- Klassifikation
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Wirtschaft
Financial Markets and the Macroeconomy
General Financial Markets: Government Policy and Regulation
- Thema
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commercial banks
countercyclical
pro-cyclical
two-step GMM
- Ereignis
-
Geistige Schöpfung
- (wer)
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Abbas, Faisal
Yousaf, Imran
Ali, Shoaib
Wong, Wing Keung
- Ereignis
-
Veröffentlichung
- (wer)
-
MDPI
- (wo)
-
Basel
- (wann)
-
2021
- DOI
-
doi:10.3390/jrfm14040142
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Abbas, Faisal
- Yousaf, Imran
- Ali, Shoaib
- Wong, Wing Keung
- MDPI
Entstanden
- 2021
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