Bank capital regulation and risk after the Global Financial Crisis

Deniz Anginer, Ata Bertay, Robert Cull, Asli Demirguc-Kunt and Davide S. Mare

Journal of Financial Stability, 2024, vol. 74, issue C

Abstract: We explore and summarize the evolution in bank capital regulations and bank risk after the global financial crisis. Using a new survey of bank regulation and supervision covering more than 120 economies, we show that regulatory capital increased, but some elements of capital regulations became laxer. Analyzing bank-level data, we also document the importance of defining bank regulatory capital narrowly as the quality of capital matters in reducing bank risk. This is particularly true for banks that have more discretion in the computation of regulatory capital ratios and are subject to weaker market monitoring.

Keywords: Banking regulation; Banking supervision; Financial Policy; Bank capital; Bank risk-taking (search for similar items in EconPapers)
JEL-codes: E58 G21 G28 L51 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:74:y:2024:i:c:s1572308921000516

DOI: 10.1016/j.jfs.2021.100891

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