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Global financial crisis, international capital requirement and bank financial stability: an international evidence

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dc.contributor.author Kusi B.A.
dc.contributor.author Forson J.A.
dc.contributor.author Adu-Darko E.
dc.contributor.author Agbloyor E.
dc.date.accessioned 2022-10-31T15:05:03Z
dc.date.available 2022-10-31T15:05:03Z
dc.date.issued 2022
dc.identifier.issn 13581988
dc.identifier.other 10.1108/JFRC-04-2022-0057
dc.identifier.uri http://41.74.91.244:8080/handle/123456789/205
dc.description Kusi, B.A., Department of Applied Finance and Policy Management, School of Business, University of Education, Winneba, Ghana, Department of Finance, University of Ghana Business School, Legon, Ghana; Forson, J.A., Department of Applied Finance and Policy Management, University of Education, Winneba, Ghana; Adu-Darko, E., Department of Banking and Finance, Central University, Tema, Ghana; Agbloyor, E., Department of Finance, University of Ghana Business School, Legon, Ghana en_US
dc.description.abstract Purpose: Financial crises (FC) remain a global threat to the financial stability of financial institutions and international bank regulatory capital requirement (IBRCR) by the Committee on Banking Supervision provides mechanism for curbing the adverse effect of FC on financial stability. Hence, the purpose of this study is to provide, evidence on how IBRCR tones down the adverse FC effects on bank financial stability (BFS). Design/methodology/approach: The study uses 102 economies between 2006 and 2016 in a two-step dynamic generalized method of moments model. Findings: The results show that while FC and IBRCR negatively and positively impact BFS, respectively, it is observed that under the increasing presence of IBRCR, the negative effect of FC on BFS declines. Additionally, the results show that economies that maintain minimum IBRCR above 10.5% recommended by BASEL III are able to reinforce a significant reduction in the negative effect of FC on BFS. Practical implications: These findings imply that in as much as financial crisis is injurious to BFS, regulators and policymakers can rely on IBRCR to avert the injurious effects of FC on BFS. Clearly, while IBRCR is necessary for reinforcing BFS through FC, bank managers who maintain IBRCR above the recommended 10.5% stands a better chance to taming the avert effect of FC on BFS. Additionally, economies that have not full adopted the BASEL minimum capital requirement may have to do so given its potential of dampening the adverse effect of FC on BFS. Originality/value: The study presents an international perspective of how BASEL capital requirements can help tame global financial crisis using a global sample of 102 economies. � 2022, Emerald Publishing Limited. en_US
dc.publisher Emerald Publishing en_US
dc.subject Capital requirement en_US
dc.subject Financial crisis en_US
dc.subject Financial stability en_US
dc.subject Stability en_US
dc.title Global financial crisis, international capital requirement and bank financial stability: an international evidence en_US
dc.type Article en_US


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