An international examination of the economic effectiveness of banking recapitalization

While the literature on capital adequacy and bank recapitalization agrees on the importance of a minimum capital requirement, recurring financial crises across the world do little to suggest that capital adequacy is enough protection for banks, even when they fully comply. By examining the case of r...

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Main Authors: Tahir, Suleiman, Adegbite, Emmanuel, Guney, Yilmaz
Format: Article
Language:English
Published: Elsevier 2017
Online Access:https://eprints.nottingham.ac.uk/55026/
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author Tahir, Suleiman
Adegbite, Emmanuel
Guney, Yilmaz
author_facet Tahir, Suleiman
Adegbite, Emmanuel
Guney, Yilmaz
author_sort Tahir, Suleiman
building Nottingham Research Data Repository
collection Online Access
description While the literature on capital adequacy and bank recapitalization agrees on the importance of a minimum capital requirement, recurring financial crises across the world do little to suggest that capital adequacy is enough protection for banks, even when they fully comply. By examining the case of regulation compelled banking recapitalizations in a cross-country context (during the period 1990Q1–2016Q2), we scrutinize the effectiveness of banking recapitalization on the economies of recently recapitalized countries. We provide implications for international business research, practice and policy by highlighting the need for countries adopting the Basel capital adequacy framework to pay attention to the peculiarities of their economies, the supporting regulatory mechanisms and their comparative spare capacities.
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spelling nottingham-550262018-09-18T09:52:13Z https://eprints.nottingham.ac.uk/55026/ An international examination of the economic effectiveness of banking recapitalization Tahir, Suleiman Adegbite, Emmanuel Guney, Yilmaz While the literature on capital adequacy and bank recapitalization agrees on the importance of a minimum capital requirement, recurring financial crises across the world do little to suggest that capital adequacy is enough protection for banks, even when they fully comply. By examining the case of regulation compelled banking recapitalizations in a cross-country context (during the period 1990Q1–2016Q2), we scrutinize the effectiveness of banking recapitalization on the economies of recently recapitalized countries. We provide implications for international business research, practice and policy by highlighting the need for countries adopting the Basel capital adequacy framework to pay attention to the peculiarities of their economies, the supporting regulatory mechanisms and their comparative spare capacities. Elsevier 2017-06-30 Article PeerReviewed application/pdf en https://eprints.nottingham.ac.uk/55026/1/an%20international%20examination%20of%20the%20economic.pdf Tahir, Suleiman, Adegbite, Emmanuel and Guney, Yilmaz (2017) An international examination of the economic effectiveness of banking recapitalization. International Business Review, 26 (3). pp. 417-434. ISSN 0969-5931 http://dx.doi.org/10.1016/j.ibusrev.2016.10.002 doi:10.1016/j.ibusrev.2016.10.002 doi:10.1016/j.ibusrev.2016.10.002
spellingShingle Tahir, Suleiman
Adegbite, Emmanuel
Guney, Yilmaz
An international examination of the economic effectiveness of banking recapitalization
title An international examination of the economic effectiveness of banking recapitalization
title_full An international examination of the economic effectiveness of banking recapitalization
title_fullStr An international examination of the economic effectiveness of banking recapitalization
title_full_unstemmed An international examination of the economic effectiveness of banking recapitalization
title_short An international examination of the economic effectiveness of banking recapitalization
title_sort international examination of the economic effectiveness of banking recapitalization
url https://eprints.nottingham.ac.uk/55026/
https://eprints.nottingham.ac.uk/55026/
https://eprints.nottingham.ac.uk/55026/