연구정보
[경제] Does higher capital maintenance drive up banks' cost of equity?—Evidence from Bangladesh
방글라데시 국외연구자료 연구보고서 - Bangladesh Bank 발간일 : 2021-08-25 등록일 : 2022-01-27 원문링크
This paper assesses whether the higher capital maintenance drives up banks’ cost of equity. We investigate the hypothesis using fixed-effect panel estimation with the data from a sample of 28 publicly listed commercial banks over the 2013-2019 periods. We find a significant negative relationship between banks' capital and cost of equity. Empirically our baseline estimates entail that a 10 percent increase in capital would reduce the cost of equity by 4.39 percent. We also find that the investors apparently don’t price the TIER2 capital, and the perceived financial risk is heavily priced by the core capital (TIER 1 capital). Together, the results suggest that some policy adjustments—such as raising the minimum requirement of Common Equity TIER 1 capital and Additional TIER 1 capital coupled with reducing the space for Tier 2 capital—would help further strengthen banks’ sustainability and financial sector stability.
본 페이지에 등재된 자료는 운영기관(KIEP) 및 EMERiCs의 공식적인 입장을 대변하고 있지 않습니다.
| 이전글 | [환경] Bangladesh Climate and Disaster Risk Atlas: Exposures, Vulnerabilities, and... | 2022-01-20 |
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