A Note on Bank Capital Buffer: Does Bank Heterogeneity matter?

Alain Angora, Isabelle Distinguin and Clovis Rugemintwari
Additional contact information
Alain Angora: LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges

Post-Print from HAL

Abstract: The objective of this paper is to extend the literature on bank capital buffer by considering the role of bank heterogeneity. Using a sample of European commercial banks over 1992-2006, we show that four key determinants – risk, business cycle, market and peer discipline – have different impact on capital buffer depending on banks' financing mode, activity or size. Our results offer a framework for discussing the appropriateness of the still on-going suggestions on bank capital regulation. Whereas they support the differentiating measures undertaken in Basel 3 such as specific capital surcharges for SIFIs, they disagree with the adoption of uniform countercyclical buffers.

Keywords: bank capital buffer; prudential regulation; Basel accords (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://unilim.hal.science/hal-00785109
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Empirical Economic Letters, 2011, 10 (9)

Downloads: (external link)
https://unilim.hal.science/hal-00785109/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00785109

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().