Arbeitspapier
The cyclical behaviour of European bank capital buffers
Using an unbalanced panel of commercial, savings and co-operative banks for the years 1997 to 2004 we examine the cyclical behaviour of European bank capital buffers.After controlling for other potential determinants of bank capital, we find that capital buffers of the banks in the accession countries (RAM) have a significant positive relationship with the cycle, while for those in the EU15 and the EA and the combined EU25 the relationship is significantly negative.We additionally find fairly slow speeds of adjustment, with around two-thirds of the correction towards desired capital buffers taking place each year.We further distinguish by type and size of bank, and find that capital buffers of commercial and savings banks, and also of a sub-sample of large banks, exhibit negative co-movement.Co-operative banks and smaller banks on the other hand, tend to exhibit positive cyclical co-movement.
- ISBN
-
952-462-299-8
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Research Discussion Papers ; No. 17/2006
- Classification
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
- Subject
-
bank capital
bank regulation
business cycle fluctuations
- Event
-
Geistige Schöpfung
- (who)
-
Jokipii, Terhi
Milne, Alistair
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
2006
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Jokipii, Terhi
- Milne, Alistair
- Bank of Finland
Time of origin
- 2006
Other Objects (12)
Credit crunch? An empirical test of cyclical credit policy
A value-at-risk approach to banks' capital buffers: An application to the new Basel Accord
Constructing a composite indicator to assess cyclical systemic risks: An early warning approach
Bank capital, capital regulation and lending
Output gaps and cyclical indicators: Finnish evidence
Taming the tides of capital: Review of capital controls and macroprudential policy in emerging economies
Floating exchange rates and capital mobility
Capital adequacy regulation and financial conglomerates
Capital income taxation and household saving
Bank safety under Basel II capital requirements
Why do capital intensive companies pay higher wages?
Why is equity capital expensive for opaque banks?
Credit crunch? An empirical test of cyclical credit policy
A value-at-risk approach to banks' capital buffers: An application to the new Basel Accord
Constructing a composite indicator to assess cyclical systemic risks: An early warning approach
Bank capital, capital regulation and lending
Output gaps and cyclical indicators: Finnish evidence
Taming the tides of capital: Review of capital controls and macroprudential policy in emerging economies
Floating exchange rates and capital mobility
Capital adequacy regulation and financial conglomerates
Capital income taxation and household saving
Bank safety under Basel II capital requirements
Why do capital intensive companies pay higher wages?
Why is equity capital expensive for opaque banks?
Credit crunch? An empirical test of cyclical credit policy
A value-at-risk approach to banks' capital buffers: An application to the new Basel Accord
Constructing a composite indicator to assess cyclical systemic risks: An early warning approach
Bank capital, capital regulation and lending
Output gaps and cyclical indicators: Finnish evidence
Taming the tides of capital: Review of capital controls and macroprudential policy in emerging economies
Floating exchange rates and capital mobility
Capital adequacy regulation and financial conglomerates
Capital income taxation and household saving
Bank safety under Basel II capital requirements
Why do capital intensive companies pay higher wages?