PRO-CYCLICAL EFFECT ON CAPITAL ADEQUACY OF COMMERCIAL BANKS IN CHINA
Journal Title: VADYBA - Year 2016, Vol 29, Issue 2
Abstract
The procyclicality of the regulatory capital requirement in the aftermath of the international finance crisis have been paid a lot of attention by researcher and regulators. It is pointed out that the risk-sensitive capital requirement in Basel Accord II drives the problem of procyclicality which amplified the economic cycle fluctuation and made the banking system a shock amplifier while not a shock absorber. In this paper, on the basis of China’s 16 major commercial banks in 2004-2014 panel data, the researcher analyzes the relationship between macro-economic cycle and capital adequacy ratio to test whether there exists procyclical effect or not within. The empirical result shows that the capital adequacy ratio changes have procyclical effect on China’s commercial banks.
Authors and Affiliations
Jing Li, Zoltán Zéman
Keywords
Related Articles
- EP ID EP466744
- DOI -
- Views 76
- Downloads 0
PRIETARŲ IR STEREOTIPŲ, KAIP MOBINGO DARBUOTOJŲSANTYKIUOSE VEIKSNIŲ, RAIŠKOS ORGANIZACIJOSE DIAGNOZAVIMAS
Diskriminacijos darbuotojų santykiuose tyrinėjimai posovietinėje erdvėje, be psichologinio ir socialinio, įgauna dar ir ideologinio palikimo kontekstą. Diskriminacijos darbuotojų santykiuose tyrinėjimas būtų neišsam...
ENHANCING LEARNING OUTCOME OF BUSINESS SIMULATION GAMES VIA PROCESS FEEDBACK
From the establishment of business simulation games in the ‘50s, there were several reports which concluded how many business faculties were using simulation games in at least one course. Studies made in the ‘60s found t...
THE REFORM OF THE JUDICIAL SYSTEM IN LITHUANIA
The judicial system plays an essential part in the separation of powers. Lithuanian legislation provides a flexible and democratic judicial system for the protection of constitutional rights and freedoms. Yet, the growin...
PROBLEMS OF MICRO & SMALL ENTERPRISES DEVELOPMENT IN LATVIA
Small business is a vital factor in the economy of any country and its regions. The objective of the research is to identify and rank high-priority and major problems of small business development in Latvia. The object o...
MANAGING RESTRUCTURING PROCESSES OF SMALL AND MIDDLE SIZE ENTERPRISES
The article presents the management model for restructuring small and middle size enterprises (SME) specifying measures for improving strategic management, rationalizing management functions as well as controlling...