U. S. investment banks in the context of the post-crisis international banking regulation reform
https://doi.org/10.38050/01300105202014
Abstract
The article looks into the reasons underlying the outspread of the full-scale mechanism of banking regulation over U. S. investment banks. We analyze the effect of the Basel III standards on stress-resilience of investment banks and examine the role of U. S. investment banks in ensuring financial stability. Based on regression analysis we found that minimum capital adequacy standards of Basel III do not have negative effect on ROE of the U. S. investment banks that are G-SIB category-designate; however, additional capital requirements (Higher Loss Absorbency (HLA) surcharge) that depend on G-SIB’s systemic significance according to their bucket as per Financial Stability Board classification do have significant and negative effect on ROE in the post crisis period. Besides, leverage requirements that also depend on G-SIB’s systemic significance have a statistically significant effect on ROE.
About the Authors
E. P. Dzhagityan
NRU Higher School of Economics
Russian Federation
Russian Federation
Moscow
A. V. Podrugina
NRU Higher School of Economics
Russian Federation
Russian Federation
Moscow
S. V. Streltsova
NRU Higher School of Economics
Russian Federation
Russian Federation
Moscow
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Review
For citations:
Dzhagityan E.P., Podrugina A.V., Streltsova S.V. U. S. investment banks in the context of the post-crisis international banking regulation reform. Moscow University Economics Bulletin. 2020;(1):21-40. (In Russ.) https://doi.org/10.38050/01300105202014
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