Publication:
Bank Capital and Systemic Stability

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dc.contributor.authorAnginer, Deniz
dc.contributor.authorDemirguc-Kunt, Asli
dc.date.accessioned2014-08-15T18:27:03Z
dc.date.available2014-08-15T18:27:03Z
dc.date.issued2014-06
dc.description.abstractThis paper distinguishes among various types of capital and examines their effect on system-wide fragility. The analysis finds that higher quality forms of capital reduce the systemic risk contribution of banks, whereas lower quality forms can have a destabilizing impact, particularly during crisis periods. The impact of capital on systemic risk is less pronounced for smaller banks, for banks located in countries with more generous safety nets, and in countries with institutions that allow for better public and private monitoring of financial institutions. The results show that regulatory capital is effective in reducing systemic risk and that regulatory risk weights are correlated with higher future asset volatility, but this relationship is significantly weaker for larger banks. The paper also finds that increased regulatory risk-weights not correlated with future asset volatility increase systemic fragility. Overall, the results are consistent with the theoretical literature that emphasizes capital as a potential buffer in absorbing liquidity, information, and economic shocks reducing contagious defaults.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/06/19731166/bank-capital-systemic-stability
dc.identifier.doi10.1596/1813-9450-6948
dc.identifier.urihttps://hdl.handle.net/10986/19377
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6948
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectARBITRAGE
dc.subjectASSET PRICES
dc.subjectASSET QUALITY
dc.subjectASSET RATIO
dc.subjectASSET VALUE
dc.subjectASSET VALUES
dc.subjectASYMMETRIC INFORMATION
dc.subjectBAILOUT
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK ACCOUNT
dc.subjectBANK CAPITAL
dc.subjectBANK CAPITAL REGULATION
dc.subjectBANK COMPETITION
dc.subjectBANK CREDITORS
dc.subjectBANK FAILURE
dc.subjectBANK FAILURES
dc.subjectBANK LIQUIDITY
dc.subjectBANK POLICY
dc.subjectBANK REGULATION
dc.subjectBANK RESTRUCTURING
dc.subjectBANK RISK
dc.subjectBANK RISK TAKING
dc.subjectBANK RUNS
dc.subjectBANK SAFETY
dc.subjectBANK SIZE
dc.subjectBANKING ASSETS
dc.subjectBANKING CRISIS
dc.subjectBANKING LAW
dc.subjectBANKING SECTOR
dc.subjectBANKING SECTORS
dc.subjectBANKING SYSTEM
dc.subjectBANKRUPTCY
dc.subjectBANKS
dc.subjectBASIS POINTS
dc.subjectBENEFICIARIES
dc.subjectBOOK VALUE
dc.subjectBORROWER
dc.subjectCALL OPTION
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL ADEQUACY RULES
dc.subjectCAPITAL ASSET
dc.subjectCAPITAL REGULATION
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL SHORTAGE
dc.subjectCAPITAL STANDARDS
dc.subjectCAPITALIZATION
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSOLIDATED FINANCIAL STATEMENTS
dc.subjectCONTAGION
dc.subjectCORPORATE DEBT
dc.subjectCREDIT BUREAU
dc.subjectCREDIT FLOWS
dc.subjectCREDIT INFORMATION
dc.subjectCREDIT MARKET
dc.subjectCREDIT REGISTRY
dc.subjectCREDITORS
dc.subjectCROSS-BORDER BANKING
dc.subjectDEBT
dc.subjectDEFAULT PROBABILITIES
dc.subjectDEFAULT RISK
dc.subjectDEFAULTS
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectEARNINGS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC SYSTEM
dc.subjectECONOMICS
dc.subjectEMERGING MARKETS
dc.subjectEQUITY CAPITAL
dc.subjectEQUITY INVESTOR
dc.subjectEQUITY MARKETS
dc.subjectEQUITY RATIO
dc.subjectEQUITY RATIOS
dc.subjectEQUITY RETURN
dc.subjectEQUITY RETURNS
dc.subjectEQUITY VALUE
dc.subjectEQUITY VALUES
dc.subjectEXTERNAL AUDITORS
dc.subjectFACE VALUE
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE BANK OF NEW YORK
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL ENGINEERING
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL RATIOS
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SAFETY
dc.subjectFINANCIAL SAFETY NETS
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SYSTEM
dc.subjectFRAUD
dc.subjectGLOBAL BANKING
dc.subjectGLOBAL MARKET
dc.subjectGLOBALIZATION
dc.subjectIMPLICIT GUARANTEE
dc.subjectINFLATION
dc.subjectINFORMATION ASYMMETRY
dc.subjectINFORMATION SHARING
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL FINANCIAL SYSTEM
dc.subjectINTERNATIONAL RATING AGENCIES
dc.subjectINTERPOLATION
dc.subjectLAWS
dc.subjectLEVEL OF RISK
dc.subjectLIABILITY
dc.subjectLIMITED LIABILITY
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY CREATION
dc.subjectLOAN
dc.subjectLOAN GUARANTEES
dc.subjectLOAN LOSS PROVISIONS
dc.subjectLOAN PROVISIONING
dc.subjectLOANABLE FUNDS
dc.subjectLOCAL GOVERNMENTS
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMARKET COMPETITION
dc.subjectMARKET EQUITY
dc.subjectMARKET INDEX
dc.subjectMARKET INFORMATION
dc.subjectMARKET INTEGRATION
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PRICES
dc.subjectMARKET RETURNS
dc.subjectMARKET SHARES
dc.subjectMARKET VALUE
dc.subjectMORAL HAZARD
dc.subjectNONPERFORMING LOANS
dc.subjectOFF BALANCE SHEET
dc.subjectOFF BALANCE SHEET EXPOSURES
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO RISK
dc.subjectPORTFOLIOS
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE CREDIT BUREAU
dc.subjectPUBLIC CREDIT
dc.subjectPUBLIC REGISTRY
dc.subjectRATING AGENCIES
dc.subjectREAL SECTOR
dc.subjectREGULATORY STANDARDS
dc.subjectREORGANIZATION
dc.subjectRESERVES
dc.subjectRISK ADJUSTED ASSETS
dc.subjectRISK EXPOSURE
dc.subjectRISK FACTORS
dc.subjectRISK MANAGEMENT
dc.subjectRISK MEASUREMENT
dc.subjectRISK TAKING
dc.subjectRISK WEIGHTED ASSETS
dc.subjectSAFETY NET
dc.subjectSAFETY NETS
dc.subjectSECURITIZATION
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDERS
dc.subjectSTATE GUARANTEES
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTOCK MARKETS
dc.subjectSTOCK RETURNS
dc.subjectSUBORDINATED DEBT
dc.subjectSUPERVISORY AGENCY
dc.subjectSUPERVISORY AUTHORITIES
dc.subjectSUPERVISORY AUTHORITY
dc.subjectSUPERVISORY POWER
dc.subjectSYNCHRONOUS STOCK PRICE MOVEMENTS
dc.subjectSYSTEMIC BANKING CRISES
dc.subjectSYSTEMIC RISK
dc.subjectT-BILL
dc.subjectT-BILL RATE
dc.subjectTANGIBLE ASSETS
dc.subjectTIER 1 CAPITAL
dc.subjectTIER 2 CAPITAL
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTREASURY YIELD
dc.subjectVALUATION
dc.subjectVALUE OF ASSETS
dc.titleBank Capital and Systemic Stabilityen
dspace.entity.typePublication
okr.crossref.titleBank Capital and Systemic Stability
okr.date.disclosure2014-07-01
okr.date.doiregistration2025-04-10T11:15:36.272763Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/06/19731166/bank-capital-systemic-stability
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeFinance and Markets
okr.guid599901468326366375
okr.identifier.doi10.1596/1813-9450-6948
okr.identifier.externaldocumentum000158349_20140626164410
okr.identifier.internaldocumentum19731166
okr.identifier.reportWPS6948
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/06/26/000158349_20140626164410/Rendered/PDF/WPS6948.pdfen
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicLaw and Development::Banking Law
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicBanks and Banking Reform
okr.unitDevelopment Research Group
okr.volume1 of 1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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