2018
DOI: 10.2139/ssrn.3206544
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Does Regulatory Regime Matter for Bank Risk Taking? A Comparative Analysis of US and Canada

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Cited by 10 publications
(18 citation statements)
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“…Our study differs from recent studies that employ either on a single economy such as Mohsni and Otchere (2018) on selected Canadian banks, an economic group such as Davis and Karim (2018) on European countries, or an international sample such as Diallo (2015). This yielded more than 40,400 bank-year observations from 7,227 banks.…”
Section: Introductionmentioning
confidence: 94%
“…Our study differs from recent studies that employ either on a single economy such as Mohsni and Otchere (2018) on selected Canadian banks, an economic group such as Davis and Karim (2018) on European countries, or an international sample such as Diallo (2015). This yielded more than 40,400 bank-year observations from 7,227 banks.…”
Section: Introductionmentioning
confidence: 94%
“…There is a substantial body of literature that examines the risk‐taking behaviour of banks (Laeven and Levine, 2009; Houston et al , 2010; Hakenes and Schnabel, 2011; Bhagat et al , 2015; Battaglia and Gallo, 2017; Bitar et al , 2018; Mohsni and Otchere, 2018). However, this is the first study to focus on the theoretical tension concerning how capital regulation affects risk‐taking in banks.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Shrieves and Dahl, 1992; Blum, 1999), others claim that well‐capitalised banks are less inclined to increase risk‐taking or improve financial stability (Furlong and Keeley, 1989; Keeley and Furlong, 1990; Noman et al , 2018). Although the latter has been the orthodox view, post‐GFC, there is a significant growth in literature that discusses the negative effects of capital regulation on incentives for risk‐taking (Laeven and Levine, 2009; Mohsni and Otchere, 2018). There is also criticism related to Basel II regulations, highlighting the inadequacies of Basel II credit risk capital requirements to curtail bank risk‐taking (Hakenes and Schnabel, 2011).…”
Section: Introductionmentioning
confidence: 99%
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“…There are several important reasons why we focus our research on banks. First, the 2007-08 financial crisis has clearly shown that banks play a central role in the financial system and have an unambiguous relation with systemic risk (e.g., Mohsni and Otchere, 2018). Also, banks are main issuers of guaranteed deposits and providers of liquidity in the economy, their key role in the smooth running of the financial system cannot be overemphasised.…”
Section: Introductionmentioning
confidence: 99%