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摘要
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We use the combination of the capital adequacy ratio and the leverage ratio to classify banks into weak-capital banks and strong-capital banks, and then examine how bank capital affects banks' performance before and during the crisis periods. Using 3,884 banks in 34 OECD countries, we find that during the crisis, weak-capital banks suffer more losses in terms of low ROE, ROA, non-interest income, and stock returns, and have greater insolvency risks and higher ROA volatility, but have higher profits and still exhibit greater risk before the crisis. We argue that capital conditions may imply risk-taking, thereby causing very diverse results. |
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