IDEAS home Printed from https://ideas.repec.org/a/aza/rmfi00/y2020v14i1p96-106.html
   My bibliography  Save this article

Financial institutions’ funding cost: Do capital and risk-taking matter?

Author

Listed:
  • Moreira, Fernando

    (University of Edinburgh Business School, UK)

Abstract

This study shows that the relative amount of capital and risk-taking compared with peers has influence on the funding cost of financial institutions. This suggests that these two factors could work as tools for achieving financial stability by means of self-regulatory practices given that financial institutions would have incentives to increase capital and refrain from taking excessive risk. Besides contributing to the policy-making debate on the viability of market discipline in banking regulation, this paper also opens avenues for further investigations in this area.

Suggested Citation

  • Moreira, Fernando, 2020. "Financial institutions’ funding cost: Do capital and risk-taking matter?," Journal of Risk Management in Financial Institutions, Henry Stewart Publications, vol. 14(1), pages 96-106, December.
    • Handle: RePEc:aza:rmfi00:y:2020:v:14:i:1:p:96-106
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/6039/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/6039/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Md Jahir Uddin Palas & Fernando Moreira, 2023. "Government Assistance and Banks' Funding Cost," International Journal of Central Banking, International Journal of Central Banking, vol. 19(4), pages 143-183, October.

    More about this item

    Keywords

    funding cost; bank capital; risk-taking;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:rmfi00:y:2020:v:14:i:1:p:96-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.