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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19765| Title: | How do banks adjust their capital ratios? Evidence from Germany |
| Keywords: | G32 G21 ddc:330 Regulatory bank capital target capital ratio partial adjustment Ornstein-Uhlenbeck process Bank Kapitalstruktur Eigenkapital Bilanzstrukturmanagement Schätzung Deutschland |
| Issue Date: | 16-Oct-2013 |
| Description: | We analyze the dynamics of banks' regulatory capital ratios. Using monthly data of regulatory capital ratios for a subset of large German banks, we estimate the target level and the adjustment speed of the capital ratio for each bank separately. We find evidence that, first, there exists a target level for a substantial percentage of banks; second, that private banks and banks with liquid assets are more likely to adjust their capital ratio tightly; and third, that banks compensate for low target capital ratios with low asset volatilities and high adjustment speeds. Fourth, banks with a target capital ratio seem to use an internal lower limit for their current ratios that is just above the regulatory minimum of 8%. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19765 |
| Other Identifiers: | http://hdl.handle.net/10419/19765 ppn:529603195 RePEc:zbw:bubdp2:5577 |
| Appears in Collections: | EconStor |
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