34 résultats pour « capitalrequirements »

The ECB Single Supervisory Mechanism: Effects on Bank Performance and Capital Requirements

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"Under the Single Supervisory Mechanism (SSM) introduced in 2014, the European Central Bank directly supervises significant euro area banks, which hold about 82% of total banking assets. We find that this important supervisory change has positive effects on the return on assets and the return on risk-weighted assets of SSM banks without increasing the risk weights used to calculate regulatory capital."

Fat Tails and Asymmetric Time Horizons: Dealing With Systemic Climate‑Related Uncertainty

"Even pioneering forward-looking stress tests cannot feasibly capture all possible tail risks. We propose supplementing the existing capital requirements regime by giving it a stronger precautionary and macroprudential focus, paying particular attention to the prevention of environmental tipping points to avoid systemic and catastrophic impacts on the financial system and macroeconomy."

Bank Capital, Risk‑Taking and Stability: The Relationships Assumed in Capital Regulation?

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"We find that bank capital and probability of default PD impact each other, where the total influence of the latter on the former is stronger. PD also affects capital via risk-taking but the opposite effect (i.e., from capital to PD via risk) is not identified, which challenges one of the main assumptions underlying capital regulation."

Regulatory Capital and Bank Risk‑Resilience Amid the Covid‑19 Pandemic:

"... banks with robust pre-crisis regulatory capital ratios are less risky (have a lower insolvency risky) relative to less-capitalised banks amid the crisis period. This suggests that the post 2007-09 Basel reforms have succeeded, to some extent, in strengthening the risk-resilience of banks during the Covid-19 economic fallout."

Bank Capital Adequacy Framework

"This paper considers the question from a non-technical point of view and surveys the regulatory requirements for capital adequacy contained in the so-called Basel framework. It analyses all contributing parts of the Capital Adequacy Ratio (CAR), including regulatory capital, credit risk, market risk and operational risk, raising in each case the concerns of the literature as well as recent contributions."

What Drives Bank‑Specific Capital Requirements? Evidence from the Ssm

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"Drawing on recently disclosed information on the Pillar 2 capital requirements of banks directly supervised by the ECB, we find that bank-specific capital requirements are mostly driven by business model and profitability, credit risk, and internal governance and risk management issues. Moreover, we propose a novel measure of bank governance quality that teases out the qualitative dimension of the P2R decision."