Bank solvency: The role of credit and liquidity risks, regulatory capital and economic stability

@article{Oino2021BankST,
  title={Bank solvency: The role of credit and liquidity risks, regulatory capital and economic stability},
  author={Isaiah Oino},
  journal={Banks and Bank Systems},
  year={2021}
}
  • Isaiah Oino
  • Published 22 November 2021
  • Economics
  • Banks and Bank Systems
Banking stability is essential to any economy due to its many functions, including intermediation, payment facilitation, and credit creation. Thus, the stability of the banking industry is one of the critical ingredients in economic growth. This paper analyzes how bank capital requirements, credit, and liquidity impact bank solvency using ten major banks that control 90% of the market share in the UK in 2009–2018. The GMM model indicates a strong association between credit and liquidity risks… 

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