Capital adequacy of commercial banks in Bulgaria: Impact strategies

Abstract

The subject of this research in broader terms involves the activities of credit institutions, the prudential requirements and their relation and dependence on the accounting methodology in banks. The broader subject of research serves as a basis for transition to more specific exploration regarding the subject of researchthe capital and capital adequacy of banks. The major aim of this paper is to reveal strategies that the banks have been using since the beginning of the latest financial crisis to achieve higher capital adequacy levels. An empirical research of the capital components and capital adequacy dynamics of the banking system in Bulgaria over the period 2007-2016 has been conducted to see the actual reflection of the latest capital framework on the capital adequacy of the banking system, and, based on research results, to make conclusions about the existing internal policies and accounting practices that would have an effect on improving the equity of commercial banks and the banking system as a whole.

The Impact of Basel Convention (II) Norms in Capital Adequacy of Jordanian Commercial Banks on the Financial Performance

“…Andasarova [28] revealed the strategies used by banks since the beginning of the last financial crisis to achieve higher levels of capital adequacy. Empirical research on capital components and capital adequacy of the banking system in Bulgaria was conducted during 2007-2016 to see the actual reflection of the latest capital framework on the capital adequacy of the banking system and, based on the research findings, to provide conclusions about the current internal policies and accounting practices that would have an impact on improving equity in commercial banks and the banking system as a whole.…”