IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i2p195-199.html
   My bibliography  Save this article

How do banks manage their capital during uncertainty?

Author

Listed:
  • Dung Tran
  • Cuong Nguyen
  • Huy Viet Hoang

Abstract

The paper investigates the impact of EPU on bank capital in the U.S. from 2001–2020. The empirical results show that banks hold more capital when encountering high EPU. This effect increases with the bank size, meaning that the larger banks hold more capital during increasing EPU. Interestingly, further analyses reveal that worst-capitalized banks decrease their capital ratio when EPU elevates. The results are robust under different econometric methods and alternative proxies of uncertainty and bank capital.

Suggested Citation

  • Dung Tran & Cuong Nguyen & Huy Viet Hoang, 2023. "How do banks manage their capital during uncertainty?," Applied Economics Letters, Taylor & Francis Journals, vol. 30(2), pages 195-199, January.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:2:p:195-199
    DOI: 10.1080/13504851.2021.1980488
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2021.1980488
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2021.1980488?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    More about this item

    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:taf:apeclt:v:30:y:2023:i:2:p:195-199. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.