In: Ekonomický časopis/Journal of Economics, vol. 72, no. 5-6
Adriana Novotna 
- Lubica Stiblarova - Kristina Kocisova
- Lubica Stiblarova - Kristina Kocisova Detaily:
Rok, strany: 2024, 235 - 260
Jazyk: eng
Kľúčové slová:
bank capitalization, stability, concentration, panel smoothing transition regression model, Euro Area;
JEL Classification: G21, G28, C33
Typ článku: Vedecký článok / Article
Typ dokumentu: PDF / PDF
O článku:
This study explores the presence of a nonlinear relationship between concentration, indicated by market share, and banking stability, represented by the Z-score, in relation to different levels of bank capitalization, assessed by the capital adequacy ratio in accordance with Basel standards, in the Euro Area countries from 2009 to 2019. By employing the panel smoothing transition regression model, we do not find the statistical significance of the coefficients when bank capitalization is low. However, the concentration-stability paradigm is confirmed when capitalization exceeds the current minimum regulatory requirements. These findings suggest that strengthening bank capitalization is crucial for enhancing stability in the Euro Area banking sector, as higher capitalization enables banks to better withstand negative economic shocks during adverse conditions.
This study explores the presence of a nonlinear relationship between concentration, indicated by market share, and banking stability, represented by the Z-score, in relation to different levels of bank capitalization, assessed by the capital adequacy ratio in accordance with Basel standards, in the Euro Area countries from 2009 to 2019. By employing the panel smoothing transition regression model, we do not find the statistical significance of the coefficients when bank capitalization is low. However, the concentration-stability paradigm is confirmed when capitalization exceeds the current minimum regulatory requirements. These findings suggest that strengthening bank capitalization is crucial for enhancing stability in the Euro Area banking sector, as higher capitalization enables banks to better withstand negative economic shocks during adverse conditions.
Ako citovať:
ISO 690:
Novotna, A., Stiblarova , L., Kocisova, K. 2024. The Bank Capitalization and the Nonlinear Concentration-Stability Nexus in the Euro Area: The PSTR Approach. In Ekonomický časopis/Journal of Economics, vol. 72, no.5-6, pp. 235-260. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2024.05-06.02
APA:
Novotna, A., Stiblarova , L., Kocisova, K. (2024). The Bank Capitalization and the Nonlinear Concentration-Stability Nexus in the Euro Area: The PSTR Approach. Ekonomický časopis/Journal of Economics, 72(5-6), 235-260. 0013-3035. DOI: https://doi.org/10.31577/ekoncas.2024.05-06.02
O vydaní:
Vydavateľ: Ekonomický ústav SAV, v.v.i. / Institute of Economic Research SAS
Publikované: 6. 11. 2024