IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v11y2001i1p9-16.html
   My bibliography  Save this article

Noncredit risks subsidization in the international capital standards

Author

Listed:
  • Sunil Mohanty

Abstract

One of the major weaknesses of current risk-based capital standards is that they account primarily for credit risk, interest rate risk and market risks and, thus, fail to explicitly incorporate other types of noncredit risks. Utilizing a risk-of-failure analysis, this study provides evidence that several sources of noncredit risks including asset concentrations and liquidity risk significantly increase bank insolvency. These results suggest that the regulatory agencies must continue to strengthen the capital positions of banks by accounting for several sources of noncredit risks in addition to credit, interest rate, and market risks.

Suggested Citation

  • Sunil Mohanty, 2001. "Noncredit risks subsidization in the international capital standards," Applied Financial Economics, Taylor & Francis Journals, vol. 11(1), pages 9-16.
    • Handle: RePEc:taf:apfiec:v:11:y:2001:i:1:p:9-16
    DOI: 10.1080/09603100150210219
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09603100150210219
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09603100150210219?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J. Nellie Liang & Donald T. Savage, 1990. "New data on the performance of nonbank subsidiaries of bank holding companies," Staff Studies 159, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ralph C. Kimball, 1997. "Specialization, risk, and capital in banking," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 51-73.
    2. Mohamed Nurullah & Sotiris K. Staikouras, 2008. "The Separation of Banking from Insurance: Evidence from Europe," Multinational Finance Journal, Multinational Finance Journal, vol. 12(3-4), pages 157-184, September.
    3. Fields, L. Paige & Fraser, Donald R. & Kolari, James W., 2007. "Bidder returns in bancassurance mergers: Is there evidence of synergy?," Journal of Banking & Finance, Elsevier, vol. 31(12), pages 3646-3662, December.
    4. James W. Kolari & Charles C. Ou & G. Hwan Shin, 2006. "Assessing the Profitability and Riskiness of Small Business Lenders in the Banking Industry," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(2), pages 1-26, Summer.
    5. Diaz, Belen Diaz & Olalla, Myriam Garcia & Azofra, Sergio Sanfilippo, 2004. "Bank acquisitions and performance: evidence from a panel of European credit entities," Journal of Economics and Business, Elsevier, vol. 56(5), pages 377-404.
    6. Cyree, Ken B. & Wansley, James W. & Boehm, Thomas P., 2000. "Determinants of bank growth choice," Journal of Banking & Finance, Elsevier, vol. 24(5), pages 709-734, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:11:y:2001:i:1:p:9-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.