Dimensions of Bank Capital Regulation: A Cross-Country Analysis

Panoeconomicus 61(4), 415-439.

24 Pages Posted: 31 May 2014 Last revised: 10 Dec 2014

See all articles by Matej Marinc

Matej Marinc

University of Ljubljana - Faculty of Economics

Mojmir Mrak

University of Ljubljana

Vasja Rant

University of Ljubljana

Date Written: April 23, 2014

Abstract

This paper identifies the main dimensions of capital regulation. We use survey data from 142 countries from the World Bank’s (2013) database covering various aspects of bank regulation. Using multiple explorative factor analysis, we identify two main dimensions of capital regulation: complexity of capital regulation and stringency of capital regulation. We show that even countries with a common legal and regulatory framework differ substantially in terms of capital regulation. For example, the level of stringency of capital regulation varies substantially across the EU countries, potentially distorting the level playing field.

Keywords: Bank Regulation, Capital Regulation, Bank Capital, Capital Structure

JEL Classification: G20, G21, G28, G32, G38, H81, K23

Suggested Citation

Marinc, Matej and Mrak, Mojmir and Rant, Vasja, Dimensions of Bank Capital Regulation: A Cross-Country Analysis (April 23, 2014). Panoeconomicus 61(4), 415-439., Available at SSRN: https://ssrn.com/abstract=2443785

Matej Marinc (Contact Author)

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Mojmir Mrak

University of Ljubljana ( email )

Dunajska 104
Ljubljana, 1000
Slovenia

Vasja Rant

University of Ljubljana ( email )

Dunajska 104
Ljubljana, 1000
Slovenia

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