scholarly journals Capital Adequacy and Systemic Risk of Banks in India

2020 ◽  
Vol 12 (1) ◽  
pp. 1
Author(s):  
Mihir Dash
Keyword(s):  
Systemic Risk ◽  
Fixed Effects ◽  
Capital Adequacy ◽  
Panel Regression ◽  
Minimum Level ◽  
Moderator Variables ◽  
Minimum Capital ◽  
Fixed Effects Panel Regression ◽  
Systemic Impact

This study examines the role of capital adequacy in systemic risk for banks in India. The moderator variables considered for the study include bank size, non-performing assets, leverage, deposits, loans & advances, and investments. A fixed-effects panel regression model was applied, with bank fixed effects and year fixed effects.The study contributes to the literature by proposing the concept of minimum level of capital adequacy for neutral systemic risk, which is the level of capital adequacy for which the systemic risk is non-positive. The results of the study indicate that bank size, non-performing assets, leverage, and loans & advances have a significant impact on the minimum capital adequacy for neutral systemic risk. Further, the results of the study suggest that the role of capital adequacy in systemic impact was different for public sector and private sector banks.The study suggests that, instead of setting a fixed capital adequacy level for all banks, the model can be used to set capital adequacy targets for individual banks with estimates or projections of the bank’s characteristics. This can be used in conjunction with the Basel III framework in order to rationalise capital adequacy targets.

scholarly journals Determinants of Systemic Risk of Banks in India

2019 ◽  
Vol 11 (1) ◽  
pp. 272
Author(s):  
Mihir Dash
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Systemic Risk ◽  
Fixed Effects ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Book Value ◽  
Public Sector Banks ◽  
Interest Income ◽  
Systemic Impact

This study examines the determinants of systemic risk for banks in India. The independent variables considered for the study include the sector, bank size, return on assets, beta, leverage, capital adequacy, non-performing assets, price to book value, deposits, loans & advances, investments, net interest income, and non-interest income. A mixed panel regression model was applied, with bank fixed effects and year random effects.The results of the study indicate that public sector banks have a much higher level of systemic impact than private sector banks. Further, the determinants of systemic impact are different for public sector and private sector banks. The systemic impact of public sector banks was positively related with size and negatively related with price to book value ratio and investments to total assets ratio, while the systemic impact of private sector banks was negatively related with return on assets and positively related with beta and net interest income to total funds ratio.

U. S. Investment Banks in the Context of the Post-Crisis International Banking Regulation Reform

2020 ◽  
Vol 2020 (1) ◽  
pp. 21-40
Author(s):  
Eduard Dzhagityan ◽  
Anastasiya Podrugina ◽  
Sofya Streltsova
Keyword(s):  
Financial Stability ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Investment Banks ◽  
Basel Iii ◽  
International Banking ◽  
Minimum Capital ◽  
Negative Effect

The article looks into the reasons underlying the outspread of the full-scale mechanism of banking regulation over U. S. investment banks. We analyze the effect of the Basel III standards on stress-resilience of investment banks and examine the role of U. S. investment banks in ensuring financial stability. Based on regression analysis we found that minimum capital adequacy standards of Basel III do not have negative effect on ROE of the U. S. investment banks that are G-SIB category-designate; however, additional capital requirements (Higher Loss Absorbency (HLA) surcharge) that depend on G-SIB’s systemic significance according to their bucket as per Financial Stability Board classification do have significant and negative effect on ROE in the post crisis period. Besides, leverage requirements that also depend on G-SIB’s systemic significance have a statistically significant effect on ROE.

scholarly journals Composition and Activity of the Board of Directors: Impact on ESG Performance in the Banking System

2018 ◽  
Vol 10 (12) ◽  
pp. 4699 ◽  
Author(s):  
Giuliana Birindelli ◽  
Stefano Dell’Atti ◽  
Antonia Iannuzzi ◽  
Marco Savioli
Keyword(s):  
Board Of Directors ◽  
Fixed Effects ◽  
Critical Mass ◽  
Banking System ◽  
The United States ◽  
Fixed Effects Panel Regression ◽  
The Board Of Directors ◽  
Corporate Social ◽  
The Impact

A growing body of research suggests that the composition of a firm’s board of directors can influence its environmental, social and governance (ESG) performance. In the banking industry, ESG performance has not yet been explored to discover how a critical mass of women on the board of directors affects performance. This paper seeks to fill this gap in the literature by testing the impact of a critical mass of female directors on ESG performance. Other board characteristics are accounted for: independence, size, frequency of meetings and Corporate Social Responsibility (CSR) sustainability committee. We use fixed effects panel regression models on a sample of 108 listed banks in Europe and the United States for the period 2011–2016. Our main empirical evidence shows that the relationship between women on the board of directors and a bank’s ESG performance is an inverted U-shape. Therefore, the critical mass theory for banks is not supported, confirming that only gender-balanced boards positively impact a bank’s performance for sustainability. There is a positive link between ESG performance and board size or the presence of a CSR sustainability committee, while it is negative with the share of independent directors. With this work, we stress the key role of corporate governance principles in banks’ ESG performance, with relevant implications for both banks and supervisory authorities.

scholarly journals Regulatory Capital is a Panacea for Efficiency, Credit Growth and Reducing Non-Performing Loans in Commercial Banks

2021 ◽  
Vol 16 (2) ◽  
pp. 265-287
Author(s):  
Amina Malik ◽  
◽  
Babar Zaheer Butt ◽  
Shahab Ud Din ◽  
Haroon Aziz ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Regulatory Capital ◽  
Credit Growth ◽  
Minimum Capital ◽  
Capital Adequacy Ratio ◽  
The Impact ◽  
Interest Margin

This study examined the effectiveness of regulatory capital in enhancing efficiency and credit growth and reducing bad loans in commercial banks listed on the Pakistan Stock Exchange (PSX) from 2010 to 2019. Precisely, the impact of capital adequacy ratio (CAR) was studied on net interest margin (NIM), credit growth (CR) and non-performing loans (NPLs). The impact of capital adequacy regulations was assessed by retrieving data from financial statements analysis (FSA), Bank Financial statements and the World Bank website. Panel regression models including ordinary least squares (OLS), fixed and random effects under robust title were applied in this study. Results revealed that the implementation of stringent CAR plays the role of panacea and increases interest margin & credit growth and a reduction of NPL in Pakistani commercial banks. The study provides practical results for regulators to customize regulations on credit growth to reduce non-performing loans and maintain healthy growth of loans by not compromising on interest margins as well as maintenance of minimum capital adequacy ratios. With the high significance of stringent minimum capital adequacy for banks, the findings of the study are valuable for regulators, banks, auditors and investors, as capital adequacy ratio commonly plays the role of Panacea in terms of efficiency, credit growth and reduction in non-performing loans. Keywords: capital adequacy ratio, efficiency, credit growth, non-performing loans

scholarly journals Determinants of increased health care spending: Colombia in the international context

2020 ◽  
Author(s):  
Juan José Espinal Piedrahita ◽  
Jairo Humberto Restrepo Zea ◽  
Daniel Alberto Grajales Gaviria
Keyword(s):  
Fixed Effects ◽  
Health Spending ◽  
Demographic Variables ◽  
Health Care Spending ◽  
Financial Sustainability ◽  
Panel Regression ◽  
Middle Income ◽  
International Context ◽  
Middle Income Countries ◽  
Fixed Effects Panel Regression

Abstract Financial sustainability in health refers to the balance over time between income and expenditure, so expenditure is a major fiscal challenge and its determinants require monitoring. The objective of this study is to define and measure the most important determinants that influence increases in health expenditure in 80 countries at different income levels, and to determine how the average level of increase compares with Colombia. A literature review was conducted to define the determinants. Then, a fixed-effects panel regression model was estimated to reveal the contribution of these determinants to the increase in spending. The results indicate that demographic variables and technological innovation have the greatest impact on the increase in health spending (45% and 43%, respectively). In conclusion, the study validates what is reported in the international literature with regard to upper-middle-income countries, where the evidence identifies that demographic and technological factors have the greatest impact on the increase in spending. There is also a need to include institutional and outcome variables to ensure that a fuller array of health spending determinants are considered, quantified, and explored.

scholarly journals Znaczenie agencji oceniających (ratingowych) po wprowadzeniu w 2004 roku przez Komitet Bazylejski Nowej Umowy Kapitałowej

2004 ◽  
pp. 101-112
Author(s):  
Monika Gładysz
Keyword(s):  
Capital Requirements ◽  
Capital Adequacy ◽  
Special Importance ◽  
Banking Supervision ◽  
External Assessment ◽  
Minimum Capital ◽  
Basel Committee

Basel Committee on Banking Supervision published in 2004 the New Capital Adequacy Framework. A special importance is assigned in this document to the external assessment agencies. Banks will have to determine the minimum capital requirements on the basis of assessments by the external agencies. The role of the external assessment agencies in the New Capital Adequacy Framework and potential threats and benefits from using by banks the external assessments for determination of the. minimum capital requirements are presented in the paper.

scholarly journals The impact of preference-based, person-centered care on regulatory outcomes

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 837-837
Author(s):  
Xiao Qiu ◽  
Katherine Abbott ◽  
John Bowblis ◽  
Kimberly Van Haitsma
Keyword(s):  
Nursing Home ◽  
Fixed Effects ◽  
Pay For Performance ◽  
Performance Indicator ◽  
Panel Regression ◽  
Fixed Effects Panel Regression ◽  
Centered Care ◽  
The Impact ◽  
Everyday Living

Abstract The Preferences for Everyday Living Inventory (PELI) was mandated as a pay for performance indicator by the Ohio Department of Medicaid in 2015. This study explored the impacts of PELI implementation on regulatory outcomes in 2017. The level of PELI implementation from n=551 Ohio nursing home providers between 2015 and 2017 were linked with Centers for Medicare and Medicaid Services Nursing Home Compare data. Fixed effects panel regression analyses assessed the effects of time-varying PELI implementation on 2015-2017 regulatory outcomes that could be correlated with quality of life including fines, substantiated complaints, health scores, deficiency counts and deficiency scores. Results show a significant increase in substantiated complaints among providers that were slow adopters of the PELI. Overall, the extent of PELI implementation was not associated with regulatory outcomes. The use of the PELI may not impact substantiated complaints suggesting further research is needed to identify person-centered outcomes of interest. Part of a symposium sponsored by the Research in Quality of Care Interest Group.

scholarly journals Changes in Family Income around the Time of Birth of Children in Germany between 1985 and 2004

2010 ◽  
Vol 35 (1) ◽  
Author(s):  
Alexander Schulze
Keyword(s):  
Family Support ◽  
Household Income ◽  
Fixed Effects ◽  
Regression Models ◽  
Family Income ◽  
Panel Regression ◽  
Short Term ◽  
Fixed Effects Panel Regression ◽  
Socioeconomic Consequences ◽  
Panel Regression Models

While the course and the determinants of fertility behaviour have been investigated intensively, the monetary consequences of birth have hardly been considered empirically to date. Therefore, this paper focuses on the short-term (equivalent) household income changes around the time of births in a longitudinal perspective and examines them for their causes. For the analyses of the longitudinal data (GSOEP-Data 1984-2005), fixed effects panel regression models were computed. The results show that the short-term socioeconomic consequences of birth have clearly increased in the last two decades and first births in particular are associated with disproportionately severe socioeconomic consequences, while further births are rarely accompanied by negative changes in the households’ socioeconomic situations. Furthermore, household income losses attributable to births only arise in double income households and increase gradually in line with a rising level of household income before birth. Hence, the analyses suggest the need for more adequate state assistance with respect to family support. Beside the provision of adequate infrastructural conditions which allow mothers to be employed, also the payments to compensate for child-related costs (“Kindergeld”) should be – in contrast to the present practice in Germany – increased and re-adjusted with respect to the child’s position in the birth sequence.

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