What is it about?
The purpose of this paper is to identify the effect of induced capital regulatory pressure on banks’ charter value and risk-taking, and the influence of bank’s charter value on its risk-taking under such a capital regulatory pressure.
Featured Image
Why is it important?
The authors have constructed different measures of regulatory pressure to investigate the influence of new capital regulatory regime on banks’ behavior. Most importantly, the exogenous changes of banks’ capital ratio induced by capital regulatory pressure during the past decade that provides a unique opportunity to directly analyze the impact of capital regulatory pressure on bank charter value and risk-taking.
Perspectives
It is the first paper that investigates the impact of capital regulatory pressure on risk-taking of the Chinese banking system, which sheds light on concerns about regulatory monitoring of bank risk and capital regulatory framework. This paper measures the impact of capital regulation on Chinese bank charter value and risk-taking and offers some support for the implementation of Basel III in China.
Jinyi Zhang
Jinan University
Read the Original
This page is a summary of: Capital regulatory pressure, charter value and bank risk-taking: empirical evidence for China, Journal of Financial Regulation and Compliance, February 2018, Emerald,
DOI: 10.1108/jfrc-01-2017-0002.
You can read the full text:
Contributors
The following have contributed to this page
