Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry
This paper analyzes the relationship between change in capital and change in risk for a sample of 23 Lebanese banks between 2009 and 2014. Using the simultaneous equations model, our evidence reveals that banks determine their capital and risk levels simultaneously, with a negative relationship. Whi...
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| Format: | article |
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2019
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| Online Access: | http://hdl.handle.net/10725/15009 https://doi.org/10.1057/s41261-019-00111-2 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://link.springer.com/article/10.1057/s41261-019-00111-2 |
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| _version_ | 1864513470128455680 |
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| author | El Khoury, Rim |
| author_facet | El Khoury, Rim |
| author_role | author |
| dc.creator.none.fl_str_mv | El Khoury, Rim |
| dc.date.none.fl_str_mv | 2019 2019-07-23 2023-09-08T13:14:51Z 2023-09-08T13:14:51Z |
| dc.identifier.none.fl_str_mv | 1745-6452 http://hdl.handle.net/10725/15009 https://doi.org/10.1057/s41261-019-00111-2 El-Khoury, R. (2020). Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry. Journal of Banking Regulation, 21, 241-255. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://link.springer.com/article/10.1057/s41261-019-00111-2 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Journal of Banking Regulation |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | This paper analyzes the relationship between change in capital and change in risk for a sample of 23 Lebanese banks between 2009 and 2014. Using the simultaneous equations model, our evidence reveals that banks determine their capital and risk levels simultaneously, with a negative relationship. While banks adjust their capital rapidly, they adjust their risk slowly. Furthermore, undercapitalized banks adjust their capital levels more rapidly than well-capitalized banks, and they increase their capital when they decrease their risk. However, there is no conclusive evidence regarding the role of regulatory pressure in driving risk-taking behavior. Finally, there are no major differences in the relationships between capital and risk regardless of whether banks are listed or not. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_15bf2f2cedf2418934ae5c064be534d3 |
| identifier_str_mv | 1745-6452 El-Khoury, R. (2020). Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry. Journal of Banking Regulation, 21, 241-255. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/15009 |
| publishDate | 2019 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industryEl Khoury, RimThis paper analyzes the relationship between change in capital and change in risk for a sample of 23 Lebanese banks between 2009 and 2014. Using the simultaneous equations model, our evidence reveals that banks determine their capital and risk levels simultaneously, with a negative relationship. While banks adjust their capital rapidly, they adjust their risk slowly. Furthermore, undercapitalized banks adjust their capital levels more rapidly than well-capitalized banks, and they increase their capital when they decrease their risk. However, there is no conclusive evidence regarding the role of regulatory pressure in driving risk-taking behavior. Finally, there are no major differences in the relationships between capital and risk regardless of whether banks are listed or not.Published2023-09-08T13:14:51Z2023-09-08T13:14:51Z20192019-07-23Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1745-6452http://hdl.handle.net/10725/15009https://doi.org/10.1057/s41261-019-00111-2El-Khoury, R. (2020). Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry. Journal of Banking Regulation, 21, 241-255.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://link.springer.com/article/10.1057/s41261-019-00111-2enJournal of Banking Regulationinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/150092024-07-04T10:23:53Z |
| spellingShingle | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry El Khoury, Rim |
| status_str | publishedVersion |
| title | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| title_full | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| title_fullStr | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| title_full_unstemmed | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| title_short | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| title_sort | Regulation, bank capital, and bank risk: evidence from the Lebanese banking industry |
| url | http://hdl.handle.net/10725/15009 https://doi.org/10.1057/s41261-019-00111-2 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://link.springer.com/article/10.1057/s41261-019-00111-2 |