An International Examination of the Economic Effectiveness of Banking Recapitalization

Tahir, S., Adegbite, E. and Guney, Y. “An international examination of the economic effectiveness of banking recapitalization”. International Business Review, 2017.

45 Pages Posted: 29 Oct 2016

See all articles by Suleiman Tahir

Suleiman Tahir

Central Bank of Nigeria

Emmanuel Adegbite

University of Nottingham

Yilmaz Guney

Coventry University

Date Written: October 28, 2016

Abstract

While the literature on capital adequacy and bank recapitalization agrees on the importance of a minimum capital requirement, recurring financial crises across the world do little to suggest that capital adequacy is enough protection for banks, even when they fully comply. By examining the case of regulation compelled banking recapitalizations in a cross-country context (during the period 1990Q1 to 2016Q2), we scrutinize the effectiveness of banking recapitalization on the economies of recently recapitalized countries. We provide implications for international business research, practice and policy by highlighting the need for countries adopting the Basel capital adequacy framework to pay attention to the peculiarities of their economies, the supporting regulatory mechanisms and their comparative spare capacities.

Keywords: Banking crisis; Financial risk, Bank regulation; Banking recapitalization; International business

JEL Classification: G21, G28, E44

Suggested Citation

Tahir, Suleiman and Adegbite, Emmanuel and Guney, Yilmaz, An International Examination of the Economic Effectiveness of Banking Recapitalization (October 28, 2016). Tahir, S., Adegbite, E. and Guney, Y. “An international examination of the economic effectiveness of banking recapitalization”. International Business Review, 2017., Available at SSRN: https://ssrn.com/abstract=2860893

Suleiman Tahir (Contact Author)

Central Bank of Nigeria ( email )

Plot 33, Abubakar Tafawa Balewa Way
Central Business District, Cadastral Zone
FCT, Abuja, Garki, Abuja P.M.B. 187
Nigeria

HOME PAGE: http://www.cbn.gov.ng

Emmanuel Adegbite

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Yilmaz Guney

Coventry University ( email )

Coventry, CV1 5FB
United Kingdom

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