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The G-20′s regulatory agenda and banks’ risk

Author

Listed:
  • Cabrera, Matias
  • Dwyer, Gerald P.
  • Nieto, Maria J.

Abstract

Using international listed banks from the United States, Europe, Japan and China from 2004 to 2014, we analyze the effect on banks’ risk of some of the most relevant new elements of the prudential regulatory framework proposed after the Financial Crisis. We measure risk by a market measure, the volatility of banks’ stock returns. We also examine the effect of government support during the financial crisis and designation as a G-SIB. We find little support for an association with government support and none for a negative relationship. We find support for a positive effect of designation as a G-SIB on risk. We find a positive association with securities trading and a negative association with capital. Banks´ chosen liquidity is unimportant for this measure of risk.

Suggested Citation

  • Cabrera, Matias & Dwyer, Gerald P. & Nieto, Maria J., 2018. "The G-20′s regulatory agenda and banks’ risk," Journal of Financial Stability, Elsevier, vol. 39(C), pages 66-78.
    • Handle: RePEc:eee:finsta:v:39:y:2018:i:c:p:66-78
    DOI: 10.1016/j.jfs.2018.09.001
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    More about this item

    Keywords

    Banks; Regulation; Financial crisis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • G01 - Financial Economics - - General - - - Financial Crises

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