RT Report
T1 Systemic banks, capital composition and CoCo bonds issuance: The effects on bank risk
A1 Echevarría Icaza, Victor
A1 Sosvilla Rivero, Simón Javier
AB This paper shows that systemic banks are prone to increase their regulatory capital ratio through a decline in risk-weighted assets density and an intense use of lower level capital. The market access of systemic banks, and the fact that they were singled out for higher capital requirements seem to have biased them towards lower level capital, consistent with the theory that asymmetric information drives capital decisions. These effects are particularly strong for institutions that had a rather low level of capitalization at the start of the period and for those that exhibited a strong use of Additional Tier I capital before the regulatory changes. Strict capital composition requirements for firms with lower buffers would be an improvement.
PB Instituto Complutense de Estudios Internacionales (ICEI)
SN 2530-0849
YR 2017
FD 2017
LK https://hdl.handle.net/20.500.14352/22900
UL https://hdl.handle.net/20.500.14352/22900
LA eng
NO Banco de España through grant from Programa de Ayudas a la Investigación 2016–2017 en Macroeconomía, Economía Monetaria, Financiera y Bancaria e Historia Económica
NO Spanish Ministry of Education, Culture and Sport [grant PRX16/00261]
NO Spanish Ministry of Economy and Competitiveness [grant ECO2016-76203-C2-2-P]
DS Docta Complutense
RD 19 dic 2025