Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy
This paper tests the effect of the Basel Risk Based Capital Requirements (Basel Accord 1) on Mauritian banks' behaviour, using a sample of 9 commercial banks. In the absence of any simultaneity between change in capital ratio and change in credit risk following the application of 3SLS to an ext...
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| Format: | Journal Article |
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Maldives Research
2015
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| Online Access: | http://ijse.maldivesresearch.org/IJSE-Issue2/Basel_ACCORD_on_Bank_performance-shalini-ramessur-and-Polodoo.pdf http://hdl.handle.net/20.500.11937/61855 |
| _version_ | 1848760742041354240 |
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| author | Ramessur, S. Polodoo, Viren |
| author_facet | Ramessur, S. Polodoo, Viren |
| author_sort | Ramessur, S. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper tests the effect of the Basel Risk Based Capital Requirements (Basel Accord 1) on Mauritian banks' behaviour, using a sample of 9 commercial banks. In the absence of any simultaneity between change in capital ratio and change in credit risk following the application of 3SLS to an extension of the model proposed by Shrieves and Dahl (1992) , the study applies the Arellano-Bond GMM technique to provide unbiased and more efficient estimates by taking into account dynamic framework. The main result emanating from this research reveals that banks' response to the Basel Risk -Based Capital Accord I requirement, is weak in the Mauritian context and under the period of study. |
| first_indexed | 2025-11-14T10:20:36Z |
| format | Journal Article |
| id | curtin-20.500.11937-61855 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:20:36Z |
| publishDate | 2015 |
| publisher | Maldives Research |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-618552018-02-01T05:20:20Z Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy Ramessur, S. Polodoo, Viren Risk Ratio Capital Ratio GMM This paper tests the effect of the Basel Risk Based Capital Requirements (Basel Accord 1) on Mauritian banks' behaviour, using a sample of 9 commercial banks. In the absence of any simultaneity between change in capital ratio and change in credit risk following the application of 3SLS to an extension of the model proposed by Shrieves and Dahl (1992) , the study applies the Arellano-Bond GMM technique to provide unbiased and more efficient estimates by taking into account dynamic framework. The main result emanating from this research reveals that banks' response to the Basel Risk -Based Capital Accord I requirement, is weak in the Mauritian context and under the period of study. 2015 Journal Article http://hdl.handle.net/20.500.11937/61855 http://ijse.maldivesresearch.org/IJSE-Issue2/Basel_ACCORD_on_Bank_performance-shalini-ramessur-and-Polodoo.pdf Maldives Research restricted |
| spellingShingle | Risk Ratio Capital Ratio GMM Ramessur, S. Polodoo, Viren Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title | Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title_full | Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title_fullStr | Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title_full_unstemmed | Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title_short | Impact of Basel Capital Accord on Bank Behaviour, the impact of Basel Risk based capital requirement (accord I) on Bank performance in the Context of a Small Service-Based island Economy |
| title_sort | impact of basel capital accord on bank behaviour, the impact of basel risk based capital requirement (accord i) on bank performance in the context of a small service-based island economy |
| topic | Risk Ratio Capital Ratio GMM |
| url | http://ijse.maldivesresearch.org/IJSE-Issue2/Basel_ACCORD_on_Bank_performance-shalini-ramessur-and-Polodoo.pdf http://hdl.handle.net/20.500.11937/61855 |