Risk, capital and financial crisis

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: Employing data on over 100 banks for Gulf Cooperation Council (GCC) countries during 1996-2011, we test the relation between risk and capital. The findings indicate that banks generally increase capital in response to an increase in risk, and not vice versa. Second, there is an uneven impact of regulatory pressure and market discipline on banks attitude towards risk and capital. Additionally, Islamic banks increased their capital as compared to conventional banks.

Keywords: Z-score; capital; 2SLS; banks; Gulf Cooperation Council (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2014-03-10
New Economics Papers: this item is included in nep-ara, nep-ban, nep-cfn, nep-fdg and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published in Borsa Istanbul Review 3.14(2014): pp. 145-157

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65246

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