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An Empirical Study Of Correlation Between Net Assets And Own Funds In The Romanian Banking System During 2001-2008

Author

Listed:
  • Adela Socol
  • Adina DănuleÅ£iu
  • Mihaela Aldea

Abstract

In this paper we explore the correlation between net assets and own funds in the Romanian banking system during 2001-2008. We based our approach on the Pearson correlation coefficient and we realized an empirical study, which demonstrates how the relevant elements of the capital ratio are connected. The study puts forward the concept that the banking capital adequacy is a subject of great significance to bankers, shareholders and depositors, and of course to bank supervision and central banks.

Suggested Citation

  • Adela Socol & Adina DănuleÅ£iu & Mihaela Aldea, 2009. "An Empirical Study Of Correlation Between Net Assets And Own Funds In The Romanian Banking System During 2001-2008," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-48.
    • Handle: RePEc:alu:journl:v:1:y:2009:i:11:p:48
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    References listed on IDEAS

    as
    1. John L. Simpson & John Evans, 2005. "Benchmarking and crosschecking international banking economic and regulatory capital," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 13(1), pages 65-79, February.
    2. J. Mukuddem-Petersen & M. A. Petersen, 2008. "Optimizing Asset and Capital Adequacy Management in Banking," Journal of Optimization Theory and Applications, Springer, vol. 137(1), pages 205-230, April.
    3. Arindam Bandyopadhyay & Tasneem Chherawala & Asish Saha, 2007. "Calibrating asset correlation for Indian corporate exposures: Implications for regulatory capital," Journal of Risk Finance, Emerald Group Publishing, vol. 8(4), pages 330-348, August.
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    More about this item

    Keywords

    Pearson correlation coeficient; Elements of capital ratio; Required banking capital;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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