Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F17%3A10365698" target="_blank" >RIV/00216208:11230/17:10365698 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1007/978-3-319-49559-0_15" target="_blank" >http://dx.doi.org/10.1007/978-3-319-49559-0_15</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/978-3-319-49559-0_15" target="_blank" >10.1007/978-3-319-49559-0_15</a>
Alternative languages
Result language
angličtina
Original language name
Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic
Original language description
In this paper, we discuss the implications of the Basel III requirements on the leverage ratio for the banking sector in the Czech Republic. We identify the potential binding constraints from regulatory limits and analyze the interactions among leverage and capital ratios over the country's economic cycle (2007-2014). By analyzing the components of ratios, we conclude that the banks are focusing more on the optimization of risk-weighted assets. Strong co-movement patterns between leverage and assets point to the active management of leverage as a means of expanding and contracting the size of balance sheets and maximizing the utility of the capital. The analysis of correlation patterns among the variables indicates that the total assets (and exposure) in contrast to Tier 1 capital are the main contributors to the cyclical movements in the leverage. The leverage and the total assets also demonstrate a weak correlation with GDP, but a strong co-movement with loans to the private sector.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
—
OECD FORD branch
50201 - Economic Theory
Result continuities
Project
—
Continuities
R - Projekt Ramcoveho programu EK
Others
Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
New Trends in Finance and Accounting
ISBN
978-3-319-49559-0
ISSN
2198-7246
e-ISSN
neuvedeno
Number of pages
12
Pages from-to
161-172
Publisher name
Springer International Publishing AG
Place of publication
Cham
Event location
Prague
Event date
May 27, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000416113500015