Franklin

Bank Capital [electronic resource] : Lessons From the Financial Crisis, Merrouche, Ouarda.

Author/Creator:
Merrouche, Ouarda.
Publication:
Washington, D.C. : International Monetary Fund, 2010.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 10/286.
IMF Working Papers; Working Paper No. 10/286
Format/Description:
Government document
Book
1 online resource (35 p.)
Local subjects:
Bank activities.
Bank asset.
Bank asset quality.
Bank assets.
Bank balance sheet.
Bank capital.
Bank capital regulation.
Bank capitalization.
Bank creditors.
Bank data.
Bank equity.
Bank failures.
Bank liquidity.
Bank of international settlements.
Bank owners.
Bank performance.
Bank policy.
Bank portfolios.
Bank regulation.
Bank research.
Bank risk.
Bank risk- taking.
Bank risk-taking.
Bank size.
Bank stock.
Bank supervision.
Bank value.
Banking.
Banking crises.
Banking sector.
Banking stability.
Banking supervision.
Banking theory.
Banks.
Banks with asset.
Banks with assets.
Bond.
Bond spread.
Bond yield.
Bond yields.
Bonds.
Capital adequacy.
Capital adequacy ratio.
Capital regulation.
Capital requirement.
Cash flows.
Corporate bond.
Deposit insurance.
Economic models.
Equity market.
Financial innovation.
Financial institutions.
Financial intermediaries.
Financial intermediation.
Financial markets.
Financial organizations.
Financial policies.
Financial sector.
Financial stability.
Financial system.
Future cash flows.
Global Financial Crisis. -- 2008-2009
Government bond.
Government Policy and Regulation.
Liquidity ratio.
Liquidity support.
Loan loss provision.
Moral hazard.
Mortgages.
National bank.
Off balance sheet.
Other Depository Institutions.
Recapitalization.
Retained earnings.
Return on equity.
Risk management.
Risk-free interest rate.
Stock market.
Stock market crashes.
Stock markets.
Stock price.
Stock price volatility.
Stock prices.
Stock returns.
Stock valuation.
Stockholders.
Subordinated debt.
Tier 1 capital.
Tier 2 capital.
Canada.
Denmark.
France.
Germany.
Greece.
Grenada.
Hong Kong Special Administrative Region of China.
Italy.
Japan.
Norway.
Portugal.
Spain.
Sweden.
Taiwan Province of China.
United Kingdom.
Summary:
Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis, differences in capital did not have much impact on stock returns; (ii) during the crisis, a stronger capital position was associated with better stock market performance, most markedly for larger banks; (iii) the relationship between stock returns and capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant.
Notes:
Description based on print version record.
Contributor:
Demirgüç-Kunt, Asli.
Detragiache, Enrica.
Merrouche, Ouarda.
Other format:
Print Version:
ISBN:
1455210935:
9781455210930
ISSN:
1018-5941
Publisher Number:
10.5089/9781455210930.001
Access Restriction:
Restricted for use by site license.
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