 The Dodd-Frank Act and Basel III: Market-based risk implications for global systemically important banks (G-SIBs)Sunil K. Mohanty, Aigbe Akhigbe, Abdulrahman Basheikh and Haroon ur Rashid Khan Journal of Multinational Financial Management, 2018, vol. 47-48, 91-109 Abstract: We examine the impact of the Dodd-Frank Act (DFA) and Basel III on market risk-taking behavior of global banks. Specifically, we measure the change in risk of global systemically important banks (G-SIBs) from the pre- global financial crisis (GFC) period to the post-European debt crisis period. Our results show a significant increase in each type of risk (total, market, and idiosyncratic) for G –SIBs from the pre-GFC period to the post-GFC period. While the risk of G-SIBs on average declined from the post-GFC period to the post-European debt crisis period, the risk level of G-SIBs on average, contrary to our expectations, is significantly higher during the post-European debt crisis period relative to the pre-GFC period. In addition, European global banks contributed significantly to the shift in risk from the pre-GFC period to the post- GFC period, as well as from the pre-GFC period to the post-European debt crisis period. Keywords: Dodd-Frank Act; Basel III; Bank risk; G-SIBs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:47-48:y:2018:i::p:91-109 DOI: 10.1016/j.mulfin.2018.10.002 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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