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Divulgence of Additional Capital Requirements in the EU Banking Union

Author

Listed:
  • Michał Kruszka

    (Finance and Accounting Department, Vistula University, ul. Stoklosy 3, 03-787 Warsaw, Poland)

  • Marcin Wroński

    (Collegium of World Economy, Warsaw Scholl of Economics, al. Niepodleglosci 162, 02-554 Warsaw, Poland)

Abstract

The European Central Bank, as a supervisory authority, set additional to the European level one capital requirements known as Pillar 2 for 118 significant credit institutions. Disclosure of Pillar 2 requirements is not compulsory, although many credit institutions choose to inform about them. We estimate a logit model to investigate if being listed on stock exchange, size, profitability and credibility have impact on the probability of divulgence. We estimate sixteen specifications of our model to compare the explanatory power of different measures of size, profitability and credibility. The legal form and the size are statistically significant in all specifications, while profitability and credibility are significant only in some of them.

Suggested Citation

  • Michał Kruszka & Marcin Wroński, 2020. "Divulgence of Additional Capital Requirements in the EU Banking Union," Economies, MDPI, vol. 8(2), pages 1-10, May.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:2:p:37-:d:355579
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    References listed on IDEAS

    as
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