← Search

Journal of Financial Stability Vol. 39 2018

The G-20′s regulatory agenda and banks’ risk

Matias Cabrera1; Gerald P. Dwyer2,3; María J. Nieto4

1 Banco Bilbao Vizcaya Argentaria (Spain) · 2 Clemson University · 3 Walker (United States) · 4 Bank of Spain

Abstract

Using international listed banks from the United States, Europe, Japan and China from 2004 to 2014, we analyze the effect on banks’ risk of some of the most relevant new elements of the prudential regulatory framework proposed after the Financial Crisis. We measure risk by a market measure, the volatility of banks’ stock returns. We also examine the effect of government support during the financial crisis and designation as a G-SIB. We find little support for an association with government support and none for a negative relationship. We find support for a positive effect of designation as a G-SIB on risk. We find a positive association with securities trading and a negative association with capital. Banks´ chosen liquidity is unimportant for this measure of risk.

DOI
10.1016/j.jfs.2018.09.001
Volume
39
Pages
66-78
Language
en
Sources
bibtex:phds-export.bib openalex crossref

Cite