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

<p>This paper examines the Leverage Ratio and Total Capital Ratio of global versus non-global banks in both the pre- and post-crisis periods. A panel data set of 165 global and non-global financial institutions from 38 countries is used for the period 1999-2015 and a random effects model is employed to examine whether global banks perform better or not compared to their non-global counterparts. This study comes up with two important findings. First, global banks do not exhibit heterogeneous behaviour with respect to both ratios neither in the pre- and especially nor in the post-crisis period. Second, the Leverage Ratio is crisis-insensitive, but the Total Capital Ratio is not. Our findings encourage further research on the topic of the contribution of global banks to the financial crisis propagation (at least as far as leverage is concerned).</p>
</abstract>

This paper examines the Leverage Ratio and Total Capital Ratio of global versus non-global banks in both the pre- and post-crisis periods. A panel data set of 165 global and non-global financial institutions from 38 countries is used for the period 1999-2015 and a random effects model is employed to examine whether global banks perform better or not compared to their non-global counterparts. This study comes up with two important findings. First, global banks do not exhibit heterogeneous behaviour with respect to both ratios neither in the pre- and especially nor in the post-crisis period. Second, the Leverage Ratio is crisis-insensitive, but the Total Capital Ratio is not. Our findings encourage further research on the topic of the contribution of global banks to the financial crisis propagation (at least as far as leverage is concerned).

Global Versus Non-Global Banks: A Capital Ratios-Based Analysis

Athens University of Economics and Business

Journal of Central Banking Theory and Practice

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

{"article-title":"Global Versus Non-Global Banks: A Capital Ratios-Based Analysis"}

This paper examines the Leverage Ratio and Total Capital Ratio of global versus non-global banks in both the pre- and post-crisis periods. A panel data set of...

Global Versus Non-Global Banks: A Capital Ratios-Based Analysis

Data publikacji: 12 maj 2021

Zakres stron: 5 - 22

Otrzymano: 04 lut 2020

Przyjęty: 27 maj 2020

DOI: https://doi.org/10.2478/jcbtp-2021-0011

Słowa kluczowe
CAMELS factors, financial crisis, Global banks, Leverage Ratio, Non-global banks, Total Capital Ratio

© 2021 Konstantinos Drakos et al., published by Sciendo

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

Global Versus Non-Global Banks: A Capital Ratios-Based Analysis

Data publikacji: 12 maj 2021

Zakres stron: 5 - 22

Otrzymano: 04 lut 2020

Przyjęty: 27 maj 2020

DOI: https://doi.org/10.2478/jcbtp-2021-0011

Słowa kluczoweCAMELS factors, financial crisis, Global banks, Leverage Ratio, Non-global banks, Total Capital Ratio

© 2021 Konstantinos Drakos et al., published by Sciendo

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

Słowa kluczowe
CAMELS factors, financial crisis, Global banks, Leverage Ratio, Non-global banks, Total Capital Ratio