Evidence map›Paper›PMID 36571072›Full record

ArticleFinance research letters2023

Regulatory capital and bank risk-resilience amid the Covid-19 pandemic: How are the Basel reforms faring?

Makafui Anani, Felix Owusu

Abstract read
In one paragraph

Article in Finance research letters, 2023. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.

0numbers the graph read from it
0cells of the map it votes in
0citing papers in PubMed
–field-weighted citation impact
1 · What the graph read from it

What it found

Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.

The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.

2 · The registry

The trial behind it

Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.

Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.

3 · Its place in the literature

Who cites it

0 citing papers in PubMed.

No citing paper in PubMed yet.

4 · The record

Corrections and comments

PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.

5 · Who and what money

Authors and funding

2 authors.

Makafui AnaniSchool of Accounting and Finance, The Hong Kong Polytechnic University, Hong Kong.
Felix OwusuFaculty of Business, Lingnan University, 8 Castle Peak Road, Tuen Mun, NT, Hong Kong.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

In this paper, we address a long-standing policy question of whether higher levels of regulatory capital, ex-ante, makes banks risk-resilient in times of severe economic downturns. Using the Covid-19 crisis as an exogenous shock to the banking system in a difference-in-difference setting, the results indicate that banks with robust pre-crisis regulatory capital ratios are less risky (have a lower insolvency risk) relative to less-capitalized banks amid the crisis period. Further analyses provides evidence consistent with the presence of a potential credit supply channel. Overall, the results suggests that the post 2007-09 Basel reforms have succeeded, to some extent, in strengthening the risk-resilience of banks during the Covid-19 economic fallout.

Indexed as

Bank insolvency riskBasel reformsCovid-19Government supportRegulatory capital

Identifiers

PMID36571072
PMCPMC9757885

What OpenQuestion holds

Textmetadata
Read underepoch 390

Registered trials

None linked

Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.