The impact of regulatory capital framework on bank investing, financing and accounting behaviour

Ng, Khin. (1994). The impact of regulatory capital framework on bank investing, financing and accounting behaviour Honours Thesis, School of Business, University of Queensland.

       
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Author Ng, Khin.
Thesis Title The impact of regulatory capital framework on bank investing, financing and accounting behaviour
School, Centre or Institute School of Business
Institution University of Queensland
Publication date 1994
Thesis type Honours Thesis
Total pages 115
Language eng
Subjects 14 Economics
Formatted abstract This study examines the investing, financing and accounting behaviour of under the risk-based Capital Adequacy Requirement framework which was implemented by the Reserve Bank of Australia in August 1988. The behaviour of banks is argued to be driven by concerns for the costly breach of the regulatory-prescribed capital minimum and by the incentives to capture asset growth opportunities. Conditions under which these incentives to manage capital adequacy manifest are argued to be reflected by proximity to the minimum CAR ratio, expected asset growth and inferred earnings volatility. Strong results were obtained in relation to the capital raising activities of banks while some evidence of asset growth management is found. There is no evidence suggesting that eligible accounting components of the CAR ratio are managed over the entire period examined. Overall, the study provides some evidence of the pressure exerted by the regulatory capital framework on bank behaviour.

 
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Created: Wed, 24 Nov 2010, 16:07:48 EST by Ning Jing on behalf of The University of Queensland Library