Bank Capital and the Cost of Equity - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bank Capital and the Cost of Equity write by Mohamed Belkhir. This book was released on 2019-12-04. Bank Capital and the Cost of Equity available in PDF, EPUB and Kindle. Using a sample of publicly listed banks from 62 countries over the 1991-2017 period, we investigate the impact of capital on banks’ cost of equity. Consistent with the theoretical prediction that more equity in the capital mix leads to a fall in firms’ costs of equity, we find that better capitalized banks enjoy lower equity costs. Our baseline estimations indicate that a 1 percentage point increase in a bank’s equity-to-assets ratio lowers its cost of equity by about 18 basis points. Our results also suggest that the form of capital that investors value the most is sheer equity capital; other forms of capital, such as Tier 2 regulatory capital, are less (or not at all) valued by investors. Additionally, our main finding that capital has a negative effect on banks’ cost of equity holds in both developed and developing countries. The results of this paper provide the missing evidence in the debate on the effects of higher capital requirements on banks’ funding costs.
International Convergence of Capital Measurement and Capital Standards
International Convergence of Capital Measurement and Capital Standards - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Convergence of Capital Measurement and Capital Standards write by . This book was released on 2004. International Convergence of Capital Measurement and Capital Standards available in PDF, EPUB and Kindle.
Effects of Bank Capital on Lending
Effects of Bank Capital on Lending - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Effects of Bank Capital on Lending write by Joseph M. Berrospide. This book was released on 2011-04. Effects of Bank Capital on Lending available in PDF, EPUB and Kindle. The effect of bank capital on lending is a critical determinant of the linkage between financial conditions and real activity, and has received especial attention in the recent financial crisis. The authors use panel-regression techniques to study the lending of large bank holding companies (BHCs) and find small effects of capital on lending. They then consider the effect of capital ratios on lending using a variant of Lown and Morgan's VAR model, and again find modest effects of bank capital ratio changes on lending. The authors¿ estimated models are then used to understand recent developments in bank lending and, in particular, to consider the role of TARP-related capital injections in affecting these developments. Illus. A print on demand pub.
The Bankers’ New Clothes
The Bankers’ New Clothes - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Bankers’ New Clothes write by Anat Admati. This book was released on 2024-01-09. The Bankers’ New Clothes available in PDF, EPUB and Kindle. A Wall Street Journal, Financial Times, and Bloomberg Businessweek Book of the Year Why our banking system is broken—and what we must do to fix it New bank failures have been a rude awakening for everyone who believed that the banking industry was reformed after the Global Financial Crisis—and that we’d never again have to choose between massive bailouts and financial havoc. The Bankers’ New Clothes uncovers just how little things have changed—and why banks are still so dangerous. Writing in clear language that anyone can understand, Anat Admati and Martin Hellwig debunk the false and misleading claims of bankers, regulators, politicians, academics, and others who oppose effective reform, and they explain how the banking system can be made safer and healthier. Thoroughly updated for a world where bank failures have made a dramatic return, this acclaimed and important book now features a new preface and four new chapters that expose the shortcomings of current policies and reveal how the dominance of banking even presents dangers to the rule of law and democracy itself.
Benefits and Costs of Bank Capital
Benefits and Costs of Bank Capital - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Benefits and Costs of Bank Capital write by Jihad Dagher. This book was released on 2016-03-03. Benefits and Costs of Bank Capital available in PDF, EPUB and Kindle. The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or resorting to public recapitalizations of banks in past banking crises. The paper also looks at the welfare costs of tighter capital regulation by reviewing the evidence on its potential impact on bank credit and lending rates. Its findings broadly support the range of loss absorbency suggested by the Financial Stability Board (FSB) and the Basel Committee for systemically important banks.
