{"id":{"repo_id":"city-london","oai_identifier":"oai:openaccess.city.ac.uk:11926"},"canonical_url":"https://search.dev.ndltd.org/etd/city-london/oai:openaccess.city.ac.uk:11926","repository":{"repo_id":"city-london","name":"City University of London","base_url":"https://openaccess.city.ac.uk/cgi/oai2"},"display":{"title":"Bank Capital Management","abstract":"The work undertaken in this study empirically explores the determinants of regulatory bank capital bu®ers, and how they in°uence bank decisions. Focusing on bank capital management under the Basel I framework, this thesis serves to address some of the con- cerns that have been voiced regarding the implementation of the new regulation (Basel II) and the broader economic e®ects that could result. In particular, the research chapters of this thesis examine the cyclical behavior of European bank capital bu®ers, the long run relationship between bank capital bu®ers and charter values, and the simultaneous adjustments of capital and risk. In each of the research chapters, we acknowledge the endogenous nature of the capital decision of a bank, and assume that banks will de¯ne an internally optimal probability of default (a function of risk and capital) to be managed over the long term. Adjustment costs, illiquid markets, together with the costs associated with a regulatory breach contribute as factors in a banks internal decision when setting a target capital ratio. Treating capital in this way, we note that it is the amount of capital held above the requirement that determines a banks attitude towards risk. Importantly, this work has shown that excessive risk taking is rarely a consequence of insu±cient capital.","abstract_html":"The work undertaken in this study empirically explores the determinants of regulatory bank capital bu®ers, and how they in°uence bank decisions. Focusing on bank capital management under the Basel I framework, this thesis serves to address some of the con- cerns that have been voiced regarding the implementation of the new regulation (Basel II) and the broader economic e®ects that could result. In particular, the research chapters of this thesis examine the cyclical behavior of European bank capital bu®ers, the long run relationship between bank capital bu®ers and charter values, and the simultaneous adjustments of capital and risk. In each of the research chapters, we acknowledge the endogenous nature of the capital decision of a bank, and assume that banks will de¯ne an internally optimal probability of default (a function of risk and capital) to be managed over the long term. Adjustment costs, illiquid markets, together with the costs associated with a regulatory breach contribute as factors in a banks internal decision when setting a target capital ratio. Treating capital in this way, we note that it is the amount of capital held above the requirement that determines a banks attitude towards risk. Importantly, this work has shown that excessive risk taking is rarely a consequence of insu±cient capital.","abstract_has_math":false,"creators":["Jokipii, T.K."],"institution":"City University London","degree_name":"phd","degree_level":"doctoral","degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2009,"date_issued":"2009-10","date_published":"2009-10","updated_at":"2026-07-24T01:39:20Z","subjects":["HG Finance"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":null,"outbound_label":null,"outbound_source":null},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Jokipii, T.K."]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2009-10"]},{"key":"dc:date.issued","label":"Date","values":["2009-10"]},{"key":"dc:publisher.department","label":"Dc Publisher Department","values":["Faculty of Finance","Doctoral Theses","Bayes Business School Doctoral Theses","Cass Business School"]},{"key":"dc:publisher.institution","label":"Dc Publisher Institution","values":["City University London"]},{"key":"dc:relation.isreferencedby","label":"Dc Relation Isreferencedby","values":["https://openaccess.city.ac.uk/id/eprint/11926/"]},{"key":"dc:type","label":"Dc Type","values":["Thesis"]},{"key":"dc:type.qualificationlevel","label":"Dc Type Qualificationlevel","values":["doctoral"]},{"key":"dc:type.qualificationname","label":"Dc Type Qualificationname","values":["phd"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["HG Finance"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://openaccess.city.ac.uk/id/eprint/11926/1/Bank%20Capital%20Management.pdf"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["The work undertaken in this study empirically explores the determinants of regulatory bank capital bu®ers, and how they in°uence bank decisions. Focusing on bank capital management under the Basel I framework, this thesis serves to address some of the con- cerns that have been voiced regarding the implementation of the new regulation (Basel II) and the broader economic e®ects that could result. In particular, the research chapters of this thesis examine the cyclical behavior of European bank capital bu®ers, the long run relationship between bank capital bu®ers and charter values, and the simultaneous adjustments of capital and risk. In each of the research chapters, we acknowledge the endogenous nature of the capital decision of a bank, and assume that banks will de¯ne an internally optimal probability of default (a function of risk and capital) to be managed over the long term. Adjustment costs, illiquid markets, together with the costs associated with a regulatory breach contribute as factors in a banks internal decision when setting a target capital ratio. Treating capital in this way, we note that it is the amount of capital held above the requirement that determines a banks attitude towards risk. Importantly, this work has shown that excessive risk taking is rarely a consequence of insu±cient capital."]},{"key":"dc:format","label":"Dc Format","values":["text"]},{"key":"dc:title","label":"Title","values":["Bank Capital Management"]}]}],"canonical_facts":{"dc:creator":["Jokipii, T.K."],"dc:date":["2009-10"],"dc:date.issued":["2009-10"],"dc:description.abstract":["The work undertaken in this study empirically explores the determinants of regulatory bank capital bu®ers, and how they in°uence bank decisions. Focusing on bank capital management under the Basel I framework, this thesis serves to address some of the con- cerns that have been voiced regarding the implementation of the new regulation (Basel II) and the broader economic e®ects that could result. In particular, the research chapters of this thesis examine the cyclical behavior of European bank capital bu®ers, the long run relationship between bank capital bu®ers and charter values, and the simultaneous adjustments of capital and risk. In each of the research chapters, we acknowledge the endogenous nature of the capital decision of a bank, and assume that banks will de¯ne an internally optimal probability of default (a function of risk and capital) to be managed over the long term. Adjustment costs, illiquid markets, together with the costs associated with a regulatory breach contribute as factors in a banks internal decision when setting a target capital ratio. Treating capital in this way, we note that it is the amount of capital held above the requirement that determines a banks attitude towards risk. Importantly, this work has shown that excessive risk taking is rarely a consequence of insu±cient capital."],"dc:format":["text"],"dc:identifier.uri":["https://openaccess.city.ac.uk/id/eprint/11926/1/Bank%20Capital%20Management.pdf"],"dc:publisher.department":["Faculty of Finance","Doctoral Theses","Bayes Business School Doctoral Theses","Cass Business School"],"dc:publisher.institution":["City University London"],"dc:relation.isreferencedby":["https://openaccess.city.ac.uk/id/eprint/11926/"],"dc:subject":["HG Finance"],"dc:title":["Bank Capital Management"],"dc:type":["Thesis"],"dc:type.qualificationlevel":["doctoral"],"dc:type.qualificationname":["phd"]},"updated_at":"2026-07-24T01:39:20Z"}