Download or read book The Impact of Capital Adequacy Requirements on Australian Banks written by Mary Elizabeth Sweeney and published by . This book was released on 1992 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bank Capital Adequacy in Australia written by Mr.B. Jang and published by International Monetary Fund. This book was released on 2012-01-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper finds that, given Australia's conservative approach in implementing the Basel II framework, Australian banks' headline capital ratios underestimate their capital strengths. Given their high capital quality and the progress in their funding profiles since the global financial crisis, the Australian banks are making good progress toward meeting the Basel III requirements, including the new liquidity standards. Stress tests calibrated on the Irish crisis experience show that the banks could withstand sizable shocks to their exposure to residential mortgages. However, combining residential mortgage shocks with corporate losses expected at the peak of the global financial crisis would put more pressure on Australian banks' capital. Therefore, it would be useful to consider the merits of higher capital requirements for systemically important domestic banks.
Download or read book The Australian Banking Sector written by Sophie Karamujic and published by . This book was released on 2000 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Revisiting Risk Weighted Assets written by Vanessa Le Leslé and published by International Monetary Fund. This book was released on 2012-03-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.
Download or read book New Zealand Banks Vulnerabilities and Capital Adequacy written by Mr.B. Jang and published by International Monetary Fund. This book was released on 2013-01-11 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper finds that, given New Zealand’s conservative approach in implementing the Basel II framework, New Zealand banks’ headline capital ratios underestimate their capital strength. A comparison with Canadian, UK and Australian banks highlights the impact of New Zealand’s more conservative approach. Stress tests in the paper show that four large New Zealand banks could withstand sizable stand-alone shocks to their exposure to either residential mortgages (calibrated on the Irish crisis experience) or corporate lending. However, combined shocks to both residential mortgages and corporate lending would put more pressure on the banks’ capital. Given high bank concentration and large offshore wholesale funding needs, the merits of higher minimum capital requirements for systemically important domestic banks could be considered, together with other measures to be implemented.
Download or read book Australian Banking System Resilience written by Pierluigi Bologna and published by International Monetary Fund. This book was released on 2010-10-01 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews Australian banks’ performance from an international perspective, with a focus on changes in capital and liquidity risk. The paper analyses the extent of any vulnerability that might arise from a potential deterioration in the funding markets and discusses whether liquidity rules, such as those being considered by the Basel Committee on Banking Supervision, may help reduce banks’ liquidity risks and improve financial stability.
Download or read book Basel Capital Adequacy Agreements and Bank Risk written by Bernard Bollen and published by . This book was released on 2014 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of the Basel agreements (Basel I introduced in 1988, Basel I with market risk in 1998 and Basel II in 2008), on the level of systematic risk of the Australian big four banks. An augmented market model with three dummy variables is employed to capture any changes in systematic risk after each agreement was introduced. We contribute to the strand of literature on the effectiveness of the Basel agreements by providing evidence consistent with the view that the Basel agreements did not help to control bank risk, but instead increased it. In particular, we find that bank risk increased after Basel I and Basel II. Basel I with market risk partially achieved its goal with the Westpac Banking Corporation and Australia and New Zealand Banking Group Limited showing decreased risk while the National Australia Bank and Commonwealth Bank of Australia had no change.
Download or read book Australia written by International Monetary Fund and published by International Monetary Fund. This book was released on 2012-11-21 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Australia’s four largest banks can be considered domestically systemic. They make up the lion’s share of the banking system, use similar business models, and are interconnected. The top four banks are relatively similar in terms of systemic importance, partly reflecting the authorities’ ?four pillar? policy, which aims at preventing the number of large banks from falling below four. To deal with systemic risks, the authorities deploy a multi-pronged approach consisting of risk-based supervision, recovery and resolution planning, and conservative risk weights and definitions of loss absorbent capital. Most countries that have already identified strategies to deal with their systemic institutions incorporate higher loss absorbency for systemic institutions in their approach. Market based methodologies using the expected default frequency for systemic institutions can gauge the amount of additional capital—higher loss absorbency—required to reduce the probability of failure of systemic institutions to an acceptable level. Alternatively, the implied funding cost advantage can indicate the degree of systemic importance and be used to define higher capital requirements to offset this implicit subsidy. Application of these methods to Australian banks provides a range of estimates of higher loss absorbency requirements for systemic institutions and a transparent framework for discussion and selection of these requirements.
Download or read book How Does Post Crisis Bank Capital Adequacy Affect Firm Investment written by Yangfan Sun and published by International Monetary Fund. This book was released on 2015-06-30 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effect of bank capital levels on firm investment drawing on a sample of 11,106 non-financial firms from 2007 to 2013 in 16 advanced economies. We examine two measures of bank capital adequacy, the Tier 1 ratio and a simple leverage ratio, and find that firms with larger external financial needs invest relatively more when domestic financial systems have relatively high leverage ratios. This pattern is more pronounced for those firms that have sound fundamentals, suggesting that bank balance sheets and their willingness to extend credit can be an important factor in determining aggregate investment and growth outcomes. The empirical findings are robust to a range of specifications. Bank Tier 1 capital ratio does not appear to have a significant effect on corporate investment, possibly because a higher Tier 1 ratio also captures a high share of assets with low risk weights.
Download or read book Perverse Effects of a Ratings related Capital Adequacy System written by Patrick Honohan and published by World Bank Publications. This book was released on 2000 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is important to harness market information to improve bank safety (for example, by increasing the role of large, well-informed, but uninsured claimants) but the approach of a ratings-related capital adequacy system could be counterproductive. Relying on ratings could induce borrowers to increase their exposure to systemic risk even if they reduce exposure to specific risk.
Download or read book Impact of Higher Capital Requirements on Bank Funding Costs written by Nguyẽ̂n Linh and published by . This book was released on 2016 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Capital Adequacy Requirements on Financing Investment and Asset Revaluation Decisions of Retail Banks written by James Colvin and published by . This book was released on 1992 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulatory Failure and the Global Financial Crisis written by Mohamed Ariff and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This fascinating book presents a lively discussion of key issues resulting from the recent financial crisis. The expert contributors explore why the global financial crisis occurred, how it destroyed wealth, triggered mass unemployment and created an unprecedented loss of control on employment, monetary policy and government budgets. Important topics encompassing the origin and impact of the crisis, governance failure, regulatory forgiveness, credit splurges, asset bubbles and the greed of institutions are analysed from the wide-ranging perspectives of not only academics in both economics and law, but also industry practitioners and regulators. This multidimensional evaluation of what went wrong concludes with an outline of what is currently being done to prevent another major crisis, and prescribes recommendations for the implementation of further preventative measures. This book will prove a compelling read for economics, finance and law scholars, as well as for practitioners including accountants, lawyers and financial market players.
Download or read book Effect of Higher Capital Requirements on the Funding Costs of Australian Banks written by James R. Cummings and published by . This book was released on 2015 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a result of its consideration of issues arising from the financial crisis of 2007-2009, the 2014 Murray Financial System Inquiry recommends that Australian banks be required to have higher capital levels. This article examines the arguments about the impact of higher capital requirements on banks' funding costs and assesses their relevance to the Australian banking sector. Based on scenario analysis, we estimate that higher capital requirements will result in a modest increase in the borrowing costs faced by bank customers (in the order of 20 basis points annually for a five percentage point increase in the ratio of equity capital to bank assets). We discuss other consequences of higher capital requirements for the efficiency and stability of the Australian banking sector.
Download or read book Market Discipline Risk and Bank Prudential Regulation and Supervision in Australia written by Warren Pat Hogan and published by . This book was released on 1988 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Adequacy of Banks in the SEACEN Countries written by Ganesh P. Adhikary and published by . This book was released on 1988 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
