Vasilios Sogiakas

Correspondence: Vasilios Sogiakas, vasilios.sogiakas@glasgow.ac.uk

Adam Smith Business School, University of Glasgow, United Kingdom

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Abstract

This paper examines the incentives and the effectiveness of tighter regulation of the Italian banks in terms of their profitability. Using balance and off-balance sheet data I focus on the capital requirements and the liquidity characteristics of the banking sector by the convenient Tier 1 ratio and the Basel III long-term Net Stable Funding Ratio (NSFR), respectively. The empirical findings of the paper underline the important role that the NSFR has as a preventive tool for potential bank failures while addresses the incentives behind the enforcement of higher Tier 1 ratios as a way for more risk averting profiles mainly during turbulent periods.

Keywords:

  Basel III; NSFR; banking efficiency; financial crisis

References

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