Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis
This paper examines changes in bank capital and capital regulations since the global financial crisis, in the Europe and Central Asia region. It shows that banks in Europe and Central Asia are better capitalized, as measured by regulatory capital r...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/796191580416462588/Bank-Capital-and-Risk-in-Europe-and-Central-Asia-Ten-Years-After-the-Crisis http://hdl.handle.net/10986/33294 |
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okr-10986-332942022-09-20T00:14:38Z Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis Anginer, Deniz Demirguc-Kunt, Asli Mare, Davide S. BANKING REGULATION BANKING SUPERVISION BASEL COMMITTEE ON BANKING SUPERVISION BASEL CAPITAL REQUIREMENTS FINANCIAL STABILITY FINANCIAL REGULATION FINANCIAL RISK RISK MANAGEMENT GLOBAL FINANCIAL CRISIS LIQUIDITY REQUIREMENTS This paper examines changes in bank capital and capital regulations since the global financial crisis, in the Europe and Central Asia region. It shows that banks in Europe and Central Asia are better capitalized, as measured by regulatory capital ratios, than they were prior to the crisis. However, the increase in simple equity ratios for the same banks has been smaller over the past 10 years. The increases in regulatory capital ratios have coincided with a reduction in the stringency of the definition of Tier 1 capital and reduction in risk-weights. Further analyses show that bank risk in Europe and Central Asia is more sensitive to changes in simple leverage ratios than in regulatory capital ratios, consistent with the notion that equity ratios only include high-quality capital and do not rely on internal risk models to compute risk-weights. Although there has been some effort to increase capital and liquidity requirements for institutions deemed systemically important, the region has been lagging in addressing the resolution of these institutions. 2020-02-06T16:50:20Z 2020-02-06T16:50:20Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/796191580416462588/Bank-Capital-and-Risk-in-Europe-and-Central-Asia-Ten-Years-After-the-Crisis http://hdl.handle.net/10986/33294 English Policy Research Working Paper;No. 9138 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
BANKING REGULATION BANKING SUPERVISION BASEL COMMITTEE ON BANKING SUPERVISION BASEL CAPITAL REQUIREMENTS FINANCIAL STABILITY FINANCIAL REGULATION FINANCIAL RISK RISK MANAGEMENT GLOBAL FINANCIAL CRISIS LIQUIDITY REQUIREMENTS |
| spellingShingle |
BANKING REGULATION BANKING SUPERVISION BASEL COMMITTEE ON BANKING SUPERVISION BASEL CAPITAL REQUIREMENTS FINANCIAL STABILITY FINANCIAL REGULATION FINANCIAL RISK RISK MANAGEMENT GLOBAL FINANCIAL CRISIS LIQUIDITY REQUIREMENTS Anginer, Deniz Demirguc-Kunt, Asli Mare, Davide S. Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No. 9138 |
| description |
This paper examines changes in bank
capital and capital regulations since the global financial
crisis, in the Europe and Central Asia region. It shows that
banks in Europe and Central Asia are better capitalized, as
measured by regulatory capital ratios, than they were prior
to the crisis. However, the increase in simple equity ratios
for the same banks has been smaller over the past 10 years.
The increases in regulatory capital ratios have coincided
with a reduction in the stringency of the definition of Tier
1 capital and reduction in risk-weights. Further analyses
show that bank risk in Europe and Central Asia is more
sensitive to changes in simple leverage ratios than in
regulatory capital ratios, consistent with the notion that
equity ratios only include high-quality capital and do not
rely on internal risk models to compute risk-weights.
Although there has been some effort to increase capital and
liquidity requirements for institutions deemed systemically
important, the region has been lagging in addressing the
resolution of these institutions. |
| format |
Working Paper |
| author |
Anginer, Deniz Demirguc-Kunt, Asli Mare, Davide S. |
| author_facet |
Anginer, Deniz Demirguc-Kunt, Asli Mare, Davide S. |
| author_sort |
Anginer, Deniz |
| title |
Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| title_short |
Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| title_full |
Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| title_fullStr |
Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| title_full_unstemmed |
Bank Capital and Risk in Europe and Central Asia Ten Years After the Crisis |
| title_sort |
bank capital and risk in europe and central asia ten years after the crisis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/796191580416462588/Bank-Capital-and-Risk-in-Europe-and-Central-Asia-Ten-Years-After-the-Crisis http://hdl.handle.net/10986/33294 |
| _version_ |
1764478416450486272 |