<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The United States is recognized as the largest economic entity in the world and its financial system has developed steadily through the guidance of the Federal Reserve System for over one hundred years. However, in recent years, the global economic downturn, coupled with the global COVID-19 pandemic, has led to an unprecedented economic depression and rapid decline in the United States financial sector. Although the U.S. government has gradually instructed banks to raise the core quantity but a giant crisis under the economic depression is still present. This study thus takes U.S. commercial banks as the subject of research and employs the two-stage bootstrapped truncated regression to investigate the impacts of increases in required Core, Tier 1, and total capital adequacy ratios on their efficiency.</p>
</abstract>

The United States is recognized as the largest economic entity in the world and its financial system has developed steadily through the guidance of the Federal Reserve System for over one hundred years. However, in recent years, the global economic downturn, coupled with the global COVID-19 pandemic, has led to an unprecedented economic depression and rapid decline in the United States financial sector. Although the U.S. government has gradually instructed banks to raise the core quantity but a giant crisis under the economic depression is still present. This study thus takes U.S. commercial banks as the subject of research and employs the two-stage bootstrapped truncated regression to investigate the impacts of increases in required Core, Tier 1, and total capital adequacy ratios on their efficiency.

The Influence of Capital Requirement of Basel III Adoption on Banks’ Operating Efficiency: Evidence from U.S. Banks

Fuzhou University of International Studies and Trade

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

The United States is recognized as the largest economic entity in the world and its financial system has developed steadily through the guidance of the Federal...

The Influence of Capital Requirement of Basel III Adoption on Banks’ Operating Efficiency: Evidence from U.S. Banks

Published Online: Apr 30, 2022

Page range: 5 - 26

Received: Oct 14, 2020

Accepted: Jun 01, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0011

Keywords
Banking, Capital requirement, Operating efficiency, Two-stage DEA, Bootstrap

© 2022 Gabriel A. Ogunmola et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Influence of Capital Requirement of Basel III Adoption on Banks’ Operating Efficiency: Evidence from U.S. Banks

Published Online: Apr 30, 2022

Page range: 5 - 26

Received: Oct 14, 2020

Accepted: Jun 01, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0011

KeywordsBanking, Capital requirement, Operating efficiency, Two-stage DEA, Bootstrap

© 2022 Gabriel A. Ogunmola et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Banking, Capital requirement, Operating efficiency, Two-stage DEA, Bootstrap