Open AccessPosted Content
Bank Capital Adequacy, Deposit Insurance and Security Values, Part I
TLDR
In this article, the effect of the riskiness of the asset mix and the relative amount of deposits and capital on the potential liability of an institution with deposits insured by a third party is analyzed.Abstract:
This paper provides a formal setting for the analysis of the capital adequacy of an institution with deposits insured by a third party. An insured depositor has a claim against the institution and a contingent claim against the insurer. This paper analyzes the effect of the riskiness of the asset mix and the relative amount of deposits and capital on the potential liability of the insurer. It shows that an increase in asset risk, holding value constant, increases the value of equity and raises the potential liability of the insurer.read more
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Capital regulation and bank risk-taking: a note (reprinted from Journal of Banking and Finance)
TL;DR: In this article, the authors examine theoretically the effects of more stringent capital regulation on bank asset portfolio risk and show that, for a value-maximizing bank, incentives to increase asset risk decline as its capital increases.
BookDOI
Bank concentration and crises
TL;DR: In this paper, the authors studied the impact of bank concentration, regulations, and national institutions on the likelihood of suffering a systemic banking crisis using data on 79 countries over the period 1980-97, and found that crises are less likely in more concentrated banking systems, in countries with fewer regulatory restrictions on bank competition and activities, and in economies with better institutions.
Journal ArticleDOI
Risk, Regulation, and Bank Holding Company Expansion Into Nonbanking
John H. Boyd,Stanley L. Graham +1 more
TL;DR: Boyd and Graham as mentioned in this paper found that, left to their own devices, bank holding companies will expand into new lines of business to increase their risk, but that regulation can control this risk-taking.
Journal ArticleDOI
Risk-based capital and deposit insurance reform
TL;DR: In this article, the authors analyzed the new risk-based capital (RBC) standards using data on U.S. banks from 1982 to 1989 and assessed the association between bank performance and RBC relative risk weights and compliance with the RBC standards.
Journal ArticleDOI
Bank Capital Adequacy, Deposit Insurance and Security Values
TL;DR: The idea is simple enough as mentioned in this paper : if the value of an institution's assets may decline in the future, its deposits will generally be safer, the larger the current value of assets in relation to the values of deposits, the safer the deposits.
References
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Posted Content
Capital regulation and bank risk-taking: a note (reprinted from Journal of Banking and Finance)
TL;DR: In this article, the authors examine theoretically the effects of more stringent capital regulation on bank asset portfolio risk and show that, for a value-maximizing bank, incentives to increase asset risk decline as its capital increases.
BookDOI
Bank concentration and crises
TL;DR: In this paper, the authors studied the impact of bank concentration, regulations, and national institutions on the likelihood of suffering a systemic banking crisis using data on 79 countries over the period 1980-97, and found that crises are less likely in more concentrated banking systems, in countries with fewer regulatory restrictions on bank competition and activities, and in economies with better institutions.
Journal ArticleDOI
Risk, Regulation, and Bank Holding Company Expansion Into Nonbanking
John H. Boyd,Stanley L. Graham +1 more
TL;DR: Boyd and Graham as mentioned in this paper found that, left to their own devices, bank holding companies will expand into new lines of business to increase their risk, but that regulation can control this risk-taking.
Journal ArticleDOI
The Profitability and Risk Effects of Allowing Bank Holding Companies to Merge With Other Financial Firms: A Simulation Study
John H. Boyd,Stanley L. Graham +1 more
Journal ArticleDOI
Rating Banks In Emerging Markets: What Credit Rating Agencies Should Learn From Financial Indicators
TL;DR: In this paper, the authors show that the most commonly used indicator of banking problems in industrial countries, the capital-to-asset ratio, has performed poorly as an indicator of bank problems in Latin America and East Asia.