Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic
Identifikátory výsledku
Kód výsledku v 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>
Výsledek na webu
<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>
Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic
Popis výsledku v původním jazyce
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.
Název v anglickém jazyce
Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic
Popis výsledku anglicky
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.
Klasifikace
Druh
D - Stať ve sborníku
CEP obor
—
OECD FORD obor
50201 - Economic Theory
Návaznosti výsledku
Projekt
—
Návaznosti
R - Projekt Ramcoveho programu EK
Ostatní
Rok uplatnění
2017
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název statě ve sborníku
New Trends in Finance and Accounting
ISBN
978-3-319-49559-0
ISSN
2198-7246
e-ISSN
neuvedeno
Počet stran výsledku
12
Strana od-do
161-172
Název nakladatele
Springer International Publishing AG
Místo vydání
Cham
Místo konání akce
Prague
Datum konání akce
27. 5. 2016
Typ akce podle státní příslušnosti
EUR - Evropská akce
Kód UT WoS článku
000416113500015