Economic Activity and Financial Institutional Risk: an empirical analysis for the Brazilian banking industry
This paper analyzes the impact of the changes in capital requirements on bank’s risk and the trade-off between economic activity and the risk of financial institutions in the Brazilian economy. Hence, an analysis based on dynamic panel data taking into account 73 banks and a vector autoregression analysis for the period from 2001 to 2008 is made. The findings underscore that banks which adopt riskier strategies reach higher profitability. Moreover, the results suggest that the banking regulation is an important instrument for reaching the balance between the economic growth and the low exposition to the risk of banking firms in markets such as the Brazilian one.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gerard Caprio & Patrick Honohan, 2008.
Department of Economics Working Papers
2008-07, Department of Economics, Williams College.
- Gerard Caprio, Jr. and Patrick Honohan, 2008. "Banking Crises," The Institute for International Integration Studies Discussion Paper Series iiisdp242, IIIS.
- Gerard Caprio & Patrick Honohan, 2008. "Banking Crises," Center for Development Economics 2008-09, Department of Economics, Williams College.
When requesting a correction, please mention this item's handle: RePEc:bcb:wpaper:243. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francisco Marcos Rodrigues Figueiredo)
If references are entirely missing, you can add them using this form.