An international examination of the economic effectiveness of banking recapitalization

Tahir, Suleiman; Adegbite, Emmanuel; Guney, Yilmaz; Adegbite, Emmanuel Afolabi

Abstract

© 2016 Elsevier Ltd While the literature on capital adequacy and bank recapitalization agrees on the importance of a minimum capital requirement, recurring financial crises across the world do little to suggest that capital adequacy is enough protection for banks, even when they fully comply. By examining the case of regulation compelled banking recapitalizations in a cross-country context (during the period 1990Q1–2016Q2), we scrutinize the effectiveness of banking recapitalization on the economies of recently recapitalized countries. We provide implications for international business research, practice and policy by highlighting the need for countries adopting the Basel capital adequacy framework to pay attention to the peculiarities of their economies, the supporting regulatory mechanisms and their comparative spare capacities.

Citation

Adegbite, E., Tahir, S., Guney, Y., & Adegbite, E. A. (2017). An international examination of the economic effectiveness of banking recapitalization. International Business Review, 26(3), 417-434. https://doi.org/10.1016/j.ibusrev.2016.10.002

• Journal Article Type: Article
• Acceptance Date: Oct 14, 2016
• Online Publication Date: Oct 21, 2016
• Publication Date: Jun 1, 2017
• Deposit Date: Nov 2, 2016
• Publicly Available Date: Apr 26, 2018
• Journal: International business review
• Print ISSN: 0969-5931
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 26
• Issue: 3
• Pages: 417-434
• DOI: https://doi.org/10.1016/j.ibusrev.2016.10.002
• Keywords: Banking crisis, Financial risk, Bank regulation, Banking recapitalization, International business
• Public URL: https://hull-repository.worktribe.com/output/444766
• Publisher URL: http://www.sciencedirect.com/science/article/pii/S0969593116302001
• Additional Information: This is a description of an article which has been published in: International business review, 2016, v.26 issue 3.