Basel III Effects on Bank Stability: Empirical Evidence from Emerging Countries

• 발행기관: 한국유통과학회
• 저자명: Muhammad ASGHAR Abdul RASHID Zaheer ABBAS
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.3, 347~354쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.03.30

영문 초록

This article examines the influence of Basel III reforms, risk management, and banking sector efficiency on banks’ financial stability in emerging countries. The data for this study is collected from various sources. Based on the GDP classification of IMF, the top 22 countries were selected as the sample. The sampling frame includes all six regions of the world including 482 banks and 3022 observations in total. The empirical analysis is carried out by estimating the random effects models. It is found that the effects of capital buffer, liquidity, and risk management practices are significant on financial stability. It is also noticed that the capital buffer has a constructive and significant influence on financial stability. However, liquidity management shows a mixed impact, as in some countries, its impact is positive and significant while, in other countries, it is insignificant. Risk management practices have an overall positive influence on financial stability in the case of large economies. However, results are insignificant in the case of small economies. Bank-specific variables, namely profitability, size, and efficiency have a positive whereas, loan quality has a negative impact on financial stability in the emerging countries. GDP has a positive impact on financial stability whereas inflation and unemployment both have a negative effect on financial stability.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Empirical Results

5. Conclusion

References

키워드

Capital Buffer Liquidity Risk Management Efficiency Financial Stability Basel III