Basel III new capital requirements, impacts and bank behavior

For some years, researchers could not find a clear effect of capital adequacy on the risk profile of banks, as shareholders could increase the riskiness of the assets (qualitative effect), crowding-out the effect of reduced leverage (volume effect). Some shareholders might have the will to increase the riskiness of the assets, but they may lack the power to do so. Considering only ”powerful” shareholders, definitive conclusions were drawn but with constant ownership profile. In this paper I investigate whether there is a significant change in the type of shareholders in response to regulatory capital shocks and, if so, will the banking system be in the hands of more “desired” shareholders. I find that ownership profile responds to a regulatory shock, changing the risk appetite of the ruling power at the bank. I find more banks and the government in the ownership of undercapitalised banks and much less institutional shareholders and free float. I claim that these new shareholders may not the desired ones, given the objective of the regulatory change, as they are associated with a preference for more leverage. One possible explanation for this crowding-out effect is that regulators are trying to contain idiosyncratic risk (more linked to the riskiness of the assets) with a rule that contains systematic risk (capital adequacy). This has a distorting effect on ownership. Another insight can be drawn from the tests: supervisors should be aware of significant ownership movements that cause the crowding-out.

Basel III: The impact of new capital requirements on profitability of Portuguese Banks

This empirical study aims to explore the impact of increased capital ratio requirements, on the ROE of the Portuguese banking sector. The paper employs both a quantitative- and qualitative approach, with the qualitative approach as the main method of research. The method adopted to conduct the qualitative research was semi structured elite interviews with banking executives. Higher capital requirements decrease the ROE of banks in Portugal, but huge impairments charges, macroeconomic factors and increased costs of deposits are clearly the dominant reasons for the reduced levels of ROE the past years. Among the measures taken to increase capital ratios, reduction of RWAs and non-core assets have been the main focus, but the issuance of CoCos is regarded as the most expensive measure due to high interest payments. However, the CoCos will not have any effect on the ROE in the long term. It is difficult to draw any conclusions on the impact of more equity in the balance sheet on the ROE of Portuguese banks, as many banks currently don’t generate enough money to pay back on shareholders´ investments.

Turun akatemian väitöskirjat 1642-1828 = Die Dissertationen der alten Universität Turku (Academia Aboënsis) 1642-1828 - II, [Hakemistot = Registerband]

Osa I ilmestyi 1962-1966.

Turun akatemian väitöskirjat 1642-1828 = Die Dissertationen der alten Universität Turku (Academia Aboënsis) 1642-1828 - I

Julkaistu viitenä vihkona vuosina 1962-1966: 1, Achrelius-Jac. Flachsenius. 1962. 128 s. - 2, Jac. Flachsenius-A. Kempe. 1963. s. 129-272. - 3, A. Kempe-Æsch. Petræus. 1964. s. 273-376. - 4, Æsch. Petræus-H. Snellman. 1965. s. 277-472. - 5, [Nimiölehti ; Esipuhe ; Katsaus väitöskirjojen vaiheisiin] ; H. Snellman-O. Öhrlin. 1966. XX, [1] s., s. 473-585.

Korrektiv gegenüber wildgewordener Theorie : Anmerkungen zur Bedeutung der Empirie für die Pädagogik ; überarbeitete Fassung der Antrittsvorlesung am Fachbereich 1 der Universität Kassel am 6. Februar 2002

Empirisches Denken und damit Kenntnisse in erfahrungswissenschaftlicher Forschungsmethodik sind im Wesentlichen für drei Bereiche der Pädagogik bedeutsam: (1) beim Betreiben von erziehungswissenschaftlicher Forschung und beim kritischen Rezipieren von Forschungsbefunden durch pädagogische Praktiker, die ihr professionelles Handeln weitestgehend auf gesichertes Wissen gründen wollen, (2) bei der praktischen Erziehungs- und Unterrichtstätigkeit zur Vermeidung von voreiligen Schlüssen aus Praxiserfahrungen für Handlungsentscheidungen und (3) als Diskussionsgrundlage für die Erarbeitung eines methodologie-übergreifend anerkennbaren Kriterienkatalogs für Wissenschaftlichkeit. Diese drei Annahmen zur Bedeutsamkeit der Kenntnis empirischer Methodik werden im Einzelnen begründet.