D: Management, Accounting and Technology

Abstract

The study appraises whether bank capital requirements, credit, and liquidity impact bank solvency in the UK. Considering 10 major banks from 2009 to 2018 and applying a generalized method of moments (GMM) model, results show that there is stronger association between credit and liquidity risks. A poor liquidity profile of a bank may restrict it from providing its financial intermediation role. Efficiency, asset quality, and economic growth exert a significant positive effect on the solvency of banks. Regulatory capital (tier1) has a positive and significant effect on bank solvency. Furthermore, banks tend to increase their regulatory capital during an economic boom. (11 tables, references) 614/39Modelling the dynamic patterns of banking and non-banking financial intermediaries' performance Bukhtiarova, A. et al.