Banking risk in a financial crisis environment

• Autor(a) principal: Ferreira, Filipa Patrícia Pires
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.6/9320
• topic: Crise Financeira da Ue; Metaanálise; Painel Dinâmico; Rentabilidade; Risco Bancário; Risco de Colisão; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This article deals with the impacts of banks capital on profitability and risk in banks. Risk assessment in the banking sector has been considered a very important and increasingly prominent topic in the banking literature and has even gained special attention after the recent financial crises, especially in Europe, the first to emerge from the eurozone creation, which exposed a growing number of significant problems and concerns related to the risk of bank failures in 'too big to fail' institutions where before they were almost unimaginable. In this paper, we attempt to examine the impact of bank capital on profitability and risk. We will also see if issues such as information asymmetry, the importance of banks in the financial system and systemic risk play significant roles in the evolution of bank failures. The article begins by presenting a comprehensive review of the literature that shows the state of the art on the subject under discussion. In methodological terms, it overlaps the recent approaches that authors have used, among others, and particularly, panel data models. It also addresses the various estimation techniques including the EGLS and GMM methods for estimating dynamic panels. The sample uses databases with bank information from the US and several European countries, collected in different and wide periods of time. This section reviews the main methods used in the literature. The article also contains a section where it presents a meta-analysis to compare the results published by the studies consulted and referred in the review of the literature; thus, in some way, making a synthesis of the best articles published in recent years as well as the empirical results achieved and their discussion.