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Values-Based and Global Systemically Important Banks: Their Stability and the Impact of Regulatory Changes After the Financial Crisis on it

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  • Theresa Schäfer

    (University of St. Gallen)

  • Sebastian Utz

    (University of St. Gallen)

Abstract

We study the financial stability of Values-Based Banks (VBBs) and Global Systemically Important Banks (GSIBs), and how regulatory changes in the aftermath of the financial crisis affected bank stability. These two types of banks allow contrasting an environmental and social impact banking approach to a conventional one. VBBs exhibit significantly higher financial stability before and during the financial crisis. However, regulatory changes in the aftermath of the financial crisis requiring higher capital buffer, have significantly affected GSIBs and rendered the difference in stability levels insignificant.

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  • Theresa Schäfer & Sebastian Utz, 2022. "Values-Based and Global Systemically Important Banks: Their Stability and the Impact of Regulatory Changes After the Financial Crisis on it," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(1), pages 5-32, March.
    • Handle: RePEc:kap:apfinm:v:29:y:2022:i:1:d:10.1007_s10690-021-09332-w
    DOI: 10.1007/s10690-021-09332-w
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