Bank Capital : Lessons from the Financial Crisis

Demirguc-Kunt, Asli; Detragiache, Enrica; Merrouche, Ouarda

dc.creator	Demirguc-Kunt, Asli
dc.creator	Detragiache, Enrica
dc.creator	Merrouche, Ouarda
dc.date	2012-03-19T18:42:47Z
dc.date	2012-03-19T18:42:47Z
dc.date	2010-11-01
dc.date.accessioned	2023-02-17T21:06:34Z
dc.date.available	2023-02-17T21:06:34Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101110113157
dc.identifier	http://hdl.handle.net/10986/3955
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244925
dc.description	Using a multi-country panel of banks, the authors study whether better capitalized banks fared better in terms of stock returns during the financial crisis. They differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the common equity ratio. They find several results: (i) before the crisis, differences in capital did not affect subsequent stock returns; (ii) during the crisis, higher capital resulted in better stock performance, most markedly for larger banks and less well-capitalized banks; (iii) the relationship between stock returns and capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) there is evidence that higher quality forms of capital, such as Tier 1 capital, were more relevant. They also examine the relationship between bank capitalization and credit default swap (CDS) spreads.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5473
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ACCOUNTS
dc.subject	ARBITRAGE
dc.subject	ASSET CLASSES
dc.subject	ASSET PRICING
dc.subject	ASSET QUALITY
dc.subject	ASSET RATIO
dc.subject	BACKED SECURITIES
dc.subject	BAILOUT
dc.subject	BALANCE SHEET
dc.subject	BALANCE SHEETS
dc.subject	BALANCE-SHEET
dc.subject	BANK ASSET
dc.subject	BANK ASSETS
dc.subject	BANK BALANCE SHEET
dc.subject	BANK CAPITAL
dc.subject	BANK CAPITALIZATION
dc.subject	BANK CREDITORS
dc.subject	BANK EQUITY
dc.subject	BANK FAILURES
dc.subject	BANK LIQUIDITY
dc.subject	BANK LOANS
dc.subject	BANK POLICY
dc.subject	BANK PORTFOLIOS
dc.subject	BANK REGULATION
dc.subject	BANK SUPERVISION
dc.subject	BANKING CRISES
dc.subject	BANKING SECTOR
dc.subject	BANKING STABILITY
dc.subject	BANKING SUPERVISION
dc.subject	BANKRUPTCY
dc.subject	BANKS
dc.subject	BASIS POINTS
dc.subject	BENCHMARK
dc.subject	BOND SPREAD
dc.subject	BOND YIELDS
dc.subject	BONDS
dc.subject	BOOK VALUE
dc.subject	CAPITAL ADEQUACY
dc.subject	CAPITAL ASSET
dc.subject	CAPITAL INFLOWS
dc.subject	CAPITAL INJECTION
dc.subject	CAPITAL REGULATION
dc.subject	CAPITAL REQUIREMENT
dc.subject	CAPITAL REQUIREMENTS
dc.subject	CAPITAL STANDARDS
dc.subject	CAPITALS
dc.subject	CDS
dc.subject	CENTRAL BANKS
dc.subject	CORPORATE BOND
dc.subject	CORPORATE GOVERNANCE
dc.subject	CREDIT DEFAULT
dc.subject	CREDIT DEFAULT SWAP
dc.subject	CREDIT DEFAULT SWAPS
dc.subject	CREDIT SPREAD
dc.subject	CREDITORS
dc.subject	CRISIS COUNTRY
dc.subject	DEBT
dc.subject	DEFAULT PROBABILITY
dc.subject	DEFAULT RISK
dc.subject	DEMAND DEPOSITS
dc.subject	DEPOSIT
dc.subject	DEPOSIT INSURANCE
dc.subject	DEPOSITS
dc.subject	DUMMY VARIABLE
dc.subject	DUMMY VARIABLES
dc.subject	ECONOMIC CRISIS
dc.subject	EQUALITY
dc.subject	EQUITY MARKET
dc.subject	EQUITY RATIO
dc.subject	EQUITY VALUE
dc.subject	EQUITY VALUES
dc.subject	EUROPEAN CENTRAL BANK
dc.subject	FINANCE MINISTRIES
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL INNOVATION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL POLICIES
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL STRESS
dc.subject	FINANCIAL STUDIES
dc.subject	FINANCIAL SUPPORT
dc.subject	FINANCIAL SYSTEM
dc.subject	FREE ASSET
dc.subject	FUTURE CASH FLOWS
dc.subject	GDP
dc.subject	GLOBAL BANKING
dc.subject	GOVERNMENT BOND
dc.subject	GOVERNMENT BOND YIELD
dc.subject	GOVERNMENT SUPPORT
dc.subject	GROUP OF BANKS
dc.subject	HOLDING
dc.subject	HOLDINGS
dc.subject	INSTRUMENT
dc.subject	INTANGIBLE
dc.subject	INTEREST INCOME
dc.subject	INTEREST RATE
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL DEVELOPMENT
dc.subject	INTERNATIONAL SETTLEMENTS
dc.subject	LIMITED LIABILITY
dc.subject	LIQUID ASSETS
dc.subject	LIQUIDITY RATIO
dc.subject	LOAN
dc.subject	LOAN LOSS PROVISIONS
dc.subject	LOAN PORTFOLIO
dc.subject	MACROECONOMIC SHOCKS
dc.subject	MACROECONOMIC VARIABLES
dc.subject	MARKET DATA
dc.subject	MARKET PARTICIPANTS
dc.subject	MARKET RETURN
dc.subject	MARKET VALUE
dc.subject	MATURITY
dc.subject	MINIMUM CAPITAL REQUIREMENTS
dc.subject	MONETARY FUND
dc.subject	MORAL HAZARD
dc.subject	MORTGAGE
dc.subject	MORTGAGE-BACKED SECURITIES
dc.subject	NEGATIVE SHOCK
dc.subject	OFF BALANCE SHEET
dc.subject	OPERATING INCOME
dc.subject	POLICY RESPONSE
dc.subject	POLICY RESPONSES
dc.subject	PORTFOLIO RISK
dc.subject	PRICE VOLATILITY
dc.subject	PRICING MODELS
dc.subject	PROFITABILITY
dc.subject	PRUDENTIAL STANDARDS
dc.subject	PUBLIC FUNDS
dc.subject	RECAPITALIZATION
dc.subject	RECESSION
dc.subject	REGULATORY APPROACHES
dc.subject	REGULATORY STANDARDS
dc.subject	RESERVES
dc.subject	RETAINED EARNINGS
dc.subject	RISK EXPOSURE
dc.subject	RISK TAKING
dc.subject	RISK WEIGHTED ASSETS
dc.subject	RISKY LOAN
dc.subject	SAVINGS
dc.subject	SHAREHOLDER
dc.subject	SHAREHOLDERS
dc.subject	SMALL BANKS
dc.subject	STANDARD ASSET
dc.subject	STOCK MARKET
dc.subject	STOCK PRICES
dc.subject	STOCK RETURN
dc.subject	STOCK RETURNS
dc.subject	SUBORDINATED DEBT
dc.subject	TIER 1 CAPITAL
dc.subject	TIER 2 CAPITAL
dc.subject	TRADING
dc.subject	TRANCHE
dc.subject	TRANSPARENCY
dc.subject	TREASURY
dc.subject	VALUATION
dc.subject	WHOLESALE FUNDING
dc.title	Bank Capital : Lessons from the Financial Crisis
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region