The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence
Autor(a) principal: | |
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Data de Publicação: | 2014 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/17048 |
Resumo: | This thesis evaluates how regulation on capital requirements is associated with cost and profit efficiency of banks. It allows an international comparison on banking regulation, capturing changes on public policies towards banks over time further, it encompasses one of the major financial crises since 1929. The impact of regulatory capital requirements on banking efficiency is assessed using the stochastic frontier production function for panel data to estimate inefficiency effects. It is used a panel dataset of 865 observations from 156 publicly listed commercial banks operating in 30 countries and covering a nine year time-horizon (2004-2012). Besides the impact on capital regulation, we also controlled for the influence of other regulatory variables, macroeconomic conditions, market structure characteristics and the state of financial development. Our results suggest that capital requirements negatively affect inefficiency, meaning that, for our sample, an increase on regulatory equity ratios will lead to an efficiency improvement. Regarding other regulatory control variables, we would say that regulation should aim to increase market discipline, while restricting banks activities. The power of supervisory agencies seems to negatively impact banks’ efficiency, but in in stressful conditions, it may help banks being more cost efficient. |
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The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidenceBankingRegulation on capital requirementsCost efficiencyProfit efficiencyFinancial crisisStochastic frontier analysisDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis thesis evaluates how regulation on capital requirements is associated with cost and profit efficiency of banks. It allows an international comparison on banking regulation, capturing changes on public policies towards banks over time further, it encompasses one of the major financial crises since 1929. The impact of regulatory capital requirements on banking efficiency is assessed using the stochastic frontier production function for panel data to estimate inefficiency effects. It is used a panel dataset of 865 observations from 156 publicly listed commercial banks operating in 30 countries and covering a nine year time-horizon (2004-2012). Besides the impact on capital regulation, we also controlled for the influence of other regulatory variables, macroeconomic conditions, market structure characteristics and the state of financial development. Our results suggest that capital requirements negatively affect inefficiency, meaning that, for our sample, an increase on regulatory equity ratios will lead to an efficiency improvement. Regarding other regulatory control variables, we would say that regulation should aim to increase market discipline, while restricting banks activities. The power of supervisory agencies seems to negatively impact banks’ efficiency, but in in stressful conditions, it may help banks being more cost efficient.Bonfim, Diana Carina Ribeiro GuimarãesVeritati - Repositório Institucional da Universidade Católica PortuguesaAlmeida, Luís Alexandre Aires de2015-03-30T09:06:13Z2015-02-1320142015-02-13T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/17048TID:201040468enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-12-26T01:36:42Zoai:repositorio.ucp.pt:10400.14/17048Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:14:18.395592Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
title |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
spellingShingle |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence Almeida, Luís Alexandre Aires de Banking Regulation on capital requirements Cost efficiency Profit efficiency Financial crisis Stochastic frontier analysis Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
title_full |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
title_fullStr |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
title_full_unstemmed |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
title_sort |
The impact of capital regulation on banks' cost and profit efficiency under stressful economic conditions : cross-country evidence |
author |
Almeida, Luís Alexandre Aires de |
author_facet |
Almeida, Luís Alexandre Aires de |
author_role |
author |
dc.contributor.none.fl_str_mv |
Bonfim, Diana Carina Ribeiro Guimarães Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Almeida, Luís Alexandre Aires de |
dc.subject.por.fl_str_mv |
Banking Regulation on capital requirements Cost efficiency Profit efficiency Financial crisis Stochastic frontier analysis Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Banking Regulation on capital requirements Cost efficiency Profit efficiency Financial crisis Stochastic frontier analysis Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This thesis evaluates how regulation on capital requirements is associated with cost and profit efficiency of banks. It allows an international comparison on banking regulation, capturing changes on public policies towards banks over time further, it encompasses one of the major financial crises since 1929. The impact of regulatory capital requirements on banking efficiency is assessed using the stochastic frontier production function for panel data to estimate inefficiency effects. It is used a panel dataset of 865 observations from 156 publicly listed commercial banks operating in 30 countries and covering a nine year time-horizon (2004-2012). Besides the impact on capital regulation, we also controlled for the influence of other regulatory variables, macroeconomic conditions, market structure characteristics and the state of financial development. Our results suggest that capital requirements negatively affect inefficiency, meaning that, for our sample, an increase on regulatory equity ratios will lead to an efficiency improvement. Regarding other regulatory control variables, we would say that regulation should aim to increase market discipline, while restricting banks activities. The power of supervisory agencies seems to negatively impact banks’ efficiency, but in in stressful conditions, it may help banks being more cost efficient. |
publishDate |
2014 |
dc.date.none.fl_str_mv |
2014 2015-03-30T09:06:13Z 2015-02-13 2015-02-13T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/17048 TID:201040468 |
url |
http://hdl.handle.net/10400.14/17048 |
identifier_str_mv |
TID:201040468 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131821983662080 |