The Relationship Between Capital Adequacy and Financial Institution's Viability
Journal of Business Management & Economics
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Title |
The Relationship Between Capital Adequacy and Financial Institution's Viability
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Creator |
Charitou, Melita; University of Nicosia, Cyprus
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Description |
The purpose of this study is to examine the role of capital adequacy in explaining the probability of default of financial institutions in the USA. Using a dataset ofmatched bankrupt and healthy commercial US banks, results show that capital adequacy ratios, as have been recently required by regulatory bodies can be used to predict bank default. These results are useful to bankers, analysts, investors and other stakeholders since they can be used to evaluate the creditworthiness of financial institutions and thus prevent financial distress.
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Publisher |
Journal of Business Management & Economics
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Contributor |
—
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Date |
2016-05-31
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://innovativejournal.in/jbme/index.php/jbme/article/view/191
10.15520/jbme.2016.vol4.iss5.191.pp42-48 |
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Source |
Journal of Business Management & Economics; Vol 4, No 5 (2016); 42-48
2347-5471 10.15520/jbme.2016.vol4.iss5 |
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Language |
eng
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Relation |
http://innovativejournal.in/jbme/index.php/jbme/article/view/191/pdf_80
10.15520/jbme.2016.vol4.iss5.191.182 |
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