izpis_h1_title_alt

Bank size, credit and the sources of bank market risk
Stever, Ryan (Author)

URLURL - Presentation file, Visit http://www.bis.org/publ/work238.pdf New window

Abstract
This study examines bank risk by investigating the equity and loan portfolio characteristics of publicly-traded bank holding companies. Unlike the pattern for non-financial firms, equity betas of large banks are two to five times greater than those of small banks. In explaining this, we note that regulation imposes an effective cap on banks' equity volatility. Because the portfolios of small banks are less diversified, this cap has a greater effect on small banks than large banks. But we reject the hypothesis that small banks lower their equity volatility through lower leverage. Instead, we find that the reduced ability of small banks to diversify forces them to either pick borrowers whose assets have relatively low credit risk or make loans that are backed by relatively more collateral.

Language:English
Keywords:bančništvo, banke, srednja podjetja, majhna podjetja, krediti, tveganje, kapital, donos, banking, banks, medium-sized enterprises, small enterprises, credit, risk, capital, yield
Work type:Not categorized (r6)
Organization:EF - Faculty of Economics
Year:2007
Publisher:Bank for International Settlements
Number of pages:III, 31 str.
Place:Basel (Switzerland)
UDC:336.71
COBISS.SI-ID:17636070 Link is opened in a new window
Views:485
Downloads:232
Metadata:XML RDF-CHPDL DC-XML DC-RDF
 
Average score:(0 votes)
Your score:Voting is allowed only to logged in users.
:
Share: Bookmark and Share

Similar documents

Similar works from RUL:
Similar works from other Slovenian collections:

Comments

Leave comment

You have to log in to leave a comment.

Comments (0)
0 - 0 / 0
 
There are no comments!

Back