چکیده:
The Basel Committee on Banking Supervision (BCBS), in response to the recent financial
crisis, has developed new stability rules aimed at preventing financial crises in the future.
This paper uses the new Liquidity Ratio (LCR) and attempts to determine the impact of
this ratio on the stability of banking system. The objective of the LCR is to promote the
short-term resilience of the liquidity risk profile of banks. It does this by ensuring that
banks have an adequate stock of unencumbered high-quality liquid assets. The LCR will
expand the banking sector’s ability to bear shocks arising from financial and economic
stress. We find that liquidity coverage ratio as a requirement in the regulation develops
bank stability. Specifically, banks with more liquidity coverage ratio are more stable. The
role of banking ownership is also pursued as another goal in the paper. According to the
results, there is the positive effect of the liquidity coverage ratio on stability in private
banks and there are the negative effects of the liquidity coverage ratio on stability in state
and specialist banks. We find that there is a difference between state banks and
specialized banks with private banks. The state and specialized bank have more liquidity
risk than private banks in Iran
خلاصه ماشینی:
Liquidity Coverage Ratio, Ownership, Stability: Evidence from Iran The Basel Committee on Banking Supervision (BCBS), in response to the recent financial crisis, has developed new stability rules aimed at preventing financial crises in the future.
We find that liquidity coverage ratio as a requirement in the regulation develops bank stability.
Banks are encouraged to hold a higher stock of low-risk highly liquid securities and a smaller quantity of short-term loans to financial institutions.
Section 4 provides a detailed description of the variables that affect the analysis of the liquidity coverage ratio including stability measures, bank-specific and country- specific variables.
, (2014) investigate the impact of liquidity risk measures using the Net Stable Funding Ratio (NSFR) and liquidity coverage ratio using panel data from US banks for the period of 2001 to 2011.
Hartlage (2012) indicates that Liquidity Coverage Ratio is a highly disparate treatment of retail and wholesale funding that may instead undermine financial stability by increasing the competition for the types of funding under the rule.
Some studies such as La Porta, Lopez-de-Silanes and Shleifer, (2002) investigate that ownership of banking is associated with bank efficiency and financial stability.
The studies such as Laeven & Levine, (2009); Schaeck and Cihak, (2012) use this ratio for measuring stability in banking system.
Table 4 shows that the multiplied private bank Dummy (D1) and the liquidity coverage ratio has a positive effect on stability.
Then the private banks in Iran with more liquidity coverage ratio have a direct effect on stability.
The Basel III Liquidity Coverage Ratio and Financial Stability.