(Ebook) Basel Accords, Bank Capital and Portfolio Risk Behavior by Samina Riaz, Venus Khim-Sen Liew, Rossazana Ab. Rahim ISBN 9781527536623, 1527536629

(Ebook) Basel Accords, Bank Capital and Portfolio Risk Behavior by Samina Riaz, Venus Khim-Sen Liew, Rossazana Ab. Rahim ISBN 9781527536623, 1527536629

With the endorsement of the Basel IIIcontracts on the supervision of the banking industry, management of the capitalbuffers throughout the business cycle attained crucial importance for thereinforcement of financial stability in the banking system. This study isdifferent from previous studies since it focuses specifically on the developingcountry and evolves a conclusion in answering the important questions on how undercapitalizedbanks and banks with low and high capital buffers adjust capital and portfoliorisk due to regulatory pressure. As such, a plethora of literature shows thatthe bank capital buffer and the business cycle do not have a consensus on theirrelationship. Therefore, this study also addresses the question: how do banksadjust buffer capital and portfolio risk in business cycle fluctuations? Thistopic is still debatable and cannot be simply answered. However, assistance isextended towards financial analysts as well as managers, to comprehend thedynamic nature inherent to the underlying assumptions of capital and riskadjustments and the cyclical behavior of the capital buffer.