The main purpose of this paper is to examine the impact of Basel Accord II on bank profitability and risk-taking in three developing Asian countries; Philippines, Thailand and India over the period 2006-2015. Using panel data, the study methodology is to employ both One-way Analysis of Variance (ANOVA) and multiple regression techniques to explore these relationships. Our empirical results show that Basel II, represented by its three pillars; capital regulatory requirement, official supervisory power and private monitoring and market discipline indices all have a significant negative impact on profitability, which may imply that binding regulations have adverse impacts. Furthermore, capital regulatory requirement and private monitoring inversely impact risk-taking while official supervisory power shows a significantly positive effect on bank risk-taking levels. Concluding that bank regulators must insure that the banks in the three countries strengthen their corporate governance and private monitoring to reduce corruption and enhance performance. Same results are obtained when conducting additional analyses to ensure the validity of the results. Contribution/ Originality:This study contributes in the existing literature by empirically examining the impact of Basel II pillars on bank profitability and risk-taking in lower-middle income Asian countries. The focus was on banks in three countries pooled over 10 years. Employing multivariate regression models aided in directly comparing results with previous studies. INTRODUCTIONBanks are perceived to be a major financial intermediary worldwide. They represent the largest and oldest financial institutions today; channelling depositors" savings into investments (Myerson, 2014). The Basel Committee on Banking Supervision established by the Bank for International Settlements (BIS) was formed to harmonize banking regulation, promoting supervision and financial banking stability. As of July 1988, the Basel Committee consisting of eleven members agreed on the International Convergence of Capital Measurements and
PurposeThis paper aims to providea comprehensive review of the concepts and definitions of green finance, and the importance of “green” impact investments today. The core challenge in combating climate change is reducing and controlling greenhouse gas emissions; therefore, this study explores the solutions green finance provides emphasizing their impact on the environment and firms' financial performance. With increasing attention to the concept of green finance, multiple forms of green financial tools have come to fruition; the most prominent are green bonds.Design/methodology/approachThis paper compiles a comprehensive green bond dataset, presenting a statistical study of the evolution of the green bonds market from its first appearance in 2006 until 2021.FindingsThe green bond market has seen massive growth over the years reaching $1651.92bn as of 2021. Findings show that green bonds are working towards shifting from high carbon-emitting energy to renewable energy, which is vital to economic development and growth. In congruence, green bonds are aligned with the United Nation's sustainable development goals (SDGs) amounting to $550bn for 2020, with the five most covered SDGs amounting to over 60%.Originality/valueWith growing worldwide concern for global warming, green finance became the fuel that pushes the world to act in combating and mitigating climate change. Coupled with adopting the Paris Agreement and the SDGs, Green finance became a vital tool in creating a pathway to sustainable development, as it connects the financial world with environmental and societal benefits.
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