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Cost and Benefit of Commercial Banks’ Capital Regulations of Australia, Norway, and Pakistan

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  • Shumaila Meer Perhiar
  • Changjun Zheng
  • Probir Kumar Bhowmik

Abstract

The sample data of 66 banks of Australia, Norway, and Pakistan is used from the year 2010 to 2017. Based on the model of Pooled Ordinary Least Square (POLS) we aim to find the cost and benefits of cost of intermediation for commercial banks of developed countries with enlightenment on the emerging economy. The empirical findings are: the cost of intermediation is significant for the developed and emerging country. Liquidity maintained in banks are beneficial in financial crises for the cost of intermediation, management efficiency is profitable for developed economy, an example for developing financial sector for the cost of intermediation. Liquidity standards are maintained after the Basel Accord. Small size banks of Pakistan need to improve economies of scale same as the large size banks in Australia and Norway. Â

Suggested Citation

  • Shumaila Meer Perhiar & Changjun Zheng & Probir Kumar Bhowmik, 2020. "Cost and Benefit of Commercial Banks’ Capital Regulations of Australia, Norway, and Pakistan," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(1), pages 1-5.
    • Handle: RePEc:spt:admaec:v:10:y:2020:i:1:f:10_1_5
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    References listed on IDEAS

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