Student or educator? Sign up with your school email and get 6 months of Pro free.
Cited by 980

The DOI matches its Crossref record; 6 of the 6 references it cites were found in a registry or an index.

The role of capital in financial institutions

Open access
Berger, Allen N., Herring, Richard J., Szegö, Giorgio P.·1995·Journal of Banking & Finance

Abstract

This introductory article examines the role of capital in financial institutions — why it is important, how market-generated capital ‘requiremenents’ differ from regulatory requirments and the form that regulatory requirements should take. Along the way, we examine historical trends in bank capital, problems in measuring capital, and some possible unintended consequences of capital requirements. Within this framework, we evaluate how the contributions to this special issue advance the literature and suggest topics for future research.

Overview

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Integrity signals

Registry

Crossref · 10.1016/0378-4266(95)00002-x

Cites

6 of 6 references verified0 citation errors · 0 not checkable

Statistics

Verification

Claims the paper makes

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

The self-check needs the paper’s full text.

Citations

Cites

Research works printed but not linked: 84

  1. Acharya, 1988, A generalized econometric model and tests of a signalling hypothesis with two discrete signals, Journal of Finance, 43, 413, 10.2307/2328468 · DOI
  2. Acharya, 1989, Optimal bank reorganization policies and pricing of federal deposit insurance, Journal of Finance, 44, 1313, 10.1111/j.1540-6261.1989.tb02655.x · DOI
  3. Avery, 1988, Market discipline in regulating bank risk: new evidence from the capital markets, Journal of Money, Credit, and Banking, 20, 597, 10.2307/1992286 · DOI
  4. Avery, 1991, Loan commitments and bank risk exposure, Journal of Banking and Finance, 15, 173, 10.1016/0378-4266(91)90045-N · DOI
  5. Avery, 1991, Risk-based capital and deposit insurance reform, Journal of Banking and Finance, 15, 847, 10.1016/0378-4266(91)90103-S · DOI
  6. Barth, 1995, Fair value accounting: effects on banks' earnings volatility, regulatory capital, and value of contractual cash flows, Journal of Banking and Finance, 19, 577, 10.1016/0378-4266(94)00141-O · DOI
  7. Benston, 1995, Is the banking and payments system fragile?, Journal of Financial Services Research, 9, 10.1007/BF01051747 · DOI
  8. Benveniste, 1987, Securitization with recourse: an instrument that offers uninsured depositors sequential claims, Journal of Banking and Finance, 11, 403, 10.1016/0378-4266(87)90041-0 · DOI
  9. Berger, 1995, The relationship between capital and earnings in banking, Journal of Money, Credit, and Banking, 26
  10. Berger, 1994, The information content of bank examinations, Board of Governors of the Federal Reserve Finance and Economics Discussion Series (FEDS) paper 94-20
  11. Berger, 1989, The price-concentration relationship in banking, Review of Economics and Statistics, 71, 291, 10.2307/1926975 · DOI · Paper page
  12. Berger, 1991, The limitations of market value accounting and a more realistic alternative, Journal of Banking and Finance, 15, 753, 10.1016/0378-4266(91)90099-8 · DOI
  13. Berger, 1994, Did risk-based capital allocate bank credit and cause a ‘credit crunch’ in the U.S.?, Journal of Money, Credit, and Banking, 26, 585, 10.2307/2077994 · DOI · Paper page
  14. Bernanke, 1992, The federal funds rate and the channels of monetary transmission, American Economic Review, 82, 901
  15. Bernanke, 1991, The credit crunch, Brookings Papers on Economics Activity, 2, 205, 10.2307/2534592 · DOI · Paper page
  16. Bhattacharya, 1993, Contemporary banking theory, Journal of Financial Intermediation, 3, 2, 10.1006/jfin.1993.1001 · DOI · Paper page
  17. Black, 1978, An Approach to the Regulation of Bank Holding Companies, Journal of Business, 51, 379, 10.1086/296005 · DOI
  18. Bradley, 1991, Risk weights, risk-based capital and deposit insurance, Journal of Banking and Finance, 15, 875, 10.1016/0378-4266(91)90104-T · DOI
  19. Buser, 1981, Federal deposit insurance, regulatory policy, and optimal bank capital, Journal of Finance, 36, 51
  20. Carey, 1993, Snacking and smoothing: Gains trading of investment account securities by commercial banks, Board of Governors of the Federal Reserve working paper
  21. Carey, 1995, Partial market value accounting, bank capital volatility, and bank risk, Journal of Banking and Finance, 19, 607, 10.1016/0378-4266(94)00142-P · DOI
  22. Carey, 1993, The economics of private placements: a new look, Financial Instruments, Institutions, and Markets, 2
  23. Carlstrom, 1995, Loan sales as a response to market-based capital requirements, Journal of Banking and Finance, 19, 627, 10.1016/0378-4266(94)00144-R · DOI
  24. Chan, 1992, Is fairly priced deposit insurance possible?, Journal of Finance, 47, 227, 10.1111/j.1540-6261.1992.tb03984.x · DOI
  25. Cole, 1995, Separating the likelihood and timing of bank failure, Journal of Banking and Finance, 19, 10.1016/0378-4266(95)98952-M · DOI · Paper page
  26. Cook, 1994, Repudiation risk and restitution costs: toward understanding premiums on insured deposits, Journal of Money, Credit and Banking, 26, 439, 10.2307/2078011 · DOI
  27. Cordell, 1995, A market evaluation of the risk-based capital standards for the U.S. financial system, Journal of Banking and Finance, 19, 531, 10.1016/0378-4266(94)00138-S · DOI
  28. Cummins, 1995, Insolvency experience, risk-based capital and prompt corrective action in property-liability insurance, Journal of Banking and Finance, 19, 511, 10.1016/0378-4266(94)00136-Q · DOI
  29. Davies, 1991, The effects of closure policies on bank risk-taking, Journal of Banking and Finance, 15, 917, 10.1016/0378-4266(91)90106-V · DOI
  30. DeAngelo, 1980, Optimal capital structure under corporate and personal taxation, Journal of Financial Economics, 8, 5, 10.1016/0304-405X(80)90019-7 · DOI · Paper page
  31. Ellis, 1992, Does the debt market assess large banks risk? Time series evidence from money center CDS, Journal of Monetary Economics, 30, 481, 10.1016/0304-3932(92)90008-P · DOI
  32. Flannery, 1994, Debt maturity and the deadweight cost of leverage: Optimally financing banking firms, American Economic Review, 84, 320
  33. Flannery, 1994, Detecting bank market discipline using subordinated debenture yields: 1983–1991, University of Florida working paper
  34. Furlong, 1989, Capital regulation and bank risk-taking: a note, Journal of Banking and Finance, 13, 883, 10.1016/0378-4266(89)90008-3 · DOI
  35. Gale, 1985, Incentive compatible debt contracts: The one-period problem, Review of Economic Studies, 52, 647, 10.2307/2297737 · DOI · Paper page
  36. Garcia, 1995, Implementing FDICIA's mandatory closure rule, Journal of Banking and Finance, 19, 723, 10.1016/0378-4266(94)00153-T · DOI
  37. General Accounting Office, 1990, Report to the Congress on the Bank Insurance Fund, GAO/AFMD90-100
  38. Gennotte, 1991, Capital controls and bank risk, Journal of Banking and Finance, 15, 805, 10.1016/0378-4266(91)90101-Q · DOI · Paper page
  39. Gorton, 1990, Market discipline and bank subordinated debt, Journal of Money, Credit, and Banking, 22, 119, 10.2307/1992132 · DOI
  40. Hancock, 1993, Has there been a ‘capital crunch’ in banking? The effects on bank lending of real estate market conditions and bank capital shortfalls, Journal of Housing Economics, 3, 31, 10.1006/jhec.1993.1003 · DOI
  41. Hancock, 1994, Bank capital and the credit crunch: the roles of risk-weighted and unweighted capital regulations, AREUEA, 22, 59, 10.1111/1540-6229.00626 · DOI
  42. Hancock, 1994, Bank capital, loan delinquencies, and real estate lending, Journal of Housing Economics, 4, 121, 10.1006/jhec.1994.1004 · DOI
  43. Hancock, 1995, Bank capital shocks: Dynamic effects on securities, loans, and capital, Journal of Banking and Finance, 19, 661, 10.1016/0378-4266(94)00147-U · DOI
  44. Hannan, 1991, Bank commercial loan markets and the role of market structure: evidence from surveys of commercial lending, Journal of Banking and Finance, 15, 133, 10.1016/0378-4266(91)90042-K · DOI · Paper page
  45. Hannan, 1988, Bank insolvency risk and the market for large certificates of deposit, Journal of Money, Credit, and Banking, 20, 203, 10.2307/1992111 · DOI
  46. Harris, 1990, Capital structure and the informational role of debt, Journal of Finance, 45, 321, 10.1111/j.1540-6261.1990.tb03693.x · DOI · Paper page
  47. Harris, 1991, The theory of capital structure, Journal of Finance, 46, 297, 10.1111/j.1540-6261.1991.tb03753.x · DOI · Paper page
  48. Haubrich, 1993, Capital requirements and shifts in commercial bank portfolios, Federal Reserve Bank of Cleveland Economic Review, 29, 2
  49. Haugen, 1978, The insignificance of bankruptcy costs to the theory of optimal capital structure, Journal of Finance, 383, 10.1111/j.1540-6261.1978.tb04855.x · DOI · Paper page
  50. Herring, 1987, Growth opportunities and risk-taking by financial intermediaries, Journal of Finance, 42, 583
  51. Ibbotson, 1988, Initial public offerings, Journal of Applied Corporate Finance, 1, 10.1111/j.1745-6622.1988.tb00164.x · DOI · Paper page
  52. Jagtiani, 1995, The effect of bank capital requirements on bank off-balance sheet financial innovations, Journal of Banking and Finance, 19, 647, 10.1016/0378-4266(94)00145-S · DOI
  53. James, 1991, The losses realized in bank failures, Journal of Finance, 46, 1223, 10.1111/j.1540-6261.1991.tb04616.x · DOI · Paper page
  54. Jensen, 1986, Agency costs of free cash flow, corporate finance, and takeovers, American Economic Review, 76, 323
  55. Jensen, 1976, Theory of the firm: Managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 305, 10.1016/0304-405X(76)90026-X · DOI · Paper page
  56. John, 1995, Perspectives on bank capital regulation and managerial compensation, Journal of Banking and Finance, 19, 735, 10.1016/0378-4266(94)00156-W · DOI
  57. Jones, 1995, The implementation of prompt corrective action, Journal of Banking and Finance, 19, 491, 10.1016/0378-4266(94)00135-P · DOI
  58. Kane, 1995, Three paradigms for the role of capitalization requirements in insured financial institutions, Journal of Banking and Finance, 19, 431, 10.1016/0378-4266(94)00132-M · DOI
  59. Kaufman, 1994, Bank contagion: a review of the theory and evidence, Journal of Financial Services Research, 8, 123, 10.1007/BF01053812 · DOI · Paper page
  60. Kaufman, 1995, FDICIA and bank capital, Journal of Banking and Finance, 19, 10.1016/0378-4266(94)00152-S · DOI
  61. Keeley, 1990, A reexamination of mean-variance analysis of bank capital regulation, Journal of Banking and Finance, 14, 69, 10.1016/0378-4266(90)90036-2 · DOI · Paper page
  62. Keeton, 1988, Substitutes and complements in bank risk-taking and the effectiveness of regulation, Federal Reserve Bank of Kansas City working paper
  63. Kim, 1988, Risk in banking and capital regulation, Journal of Finance, 43, 1219, 10.1111/j.1540-6261.1988.tb03966.x · DOI · Paper page
  64. Koehn, 1980, Regulation of bank capital and portfolio risk, Journal of Finance, 43, 1235, 10.1111/j.1540-6261.1980.tb02206.x · DOI
  65. Kwan, 1995, An analysis of inefficiencies in banking, Journal of Banking and Finance, 19, 733, 10.1016/0378-4266(94)00155-V · DOI
  66. Lane, 1986, An application of the Cox proportional hazards model to bank failure, Journal of Banking and Finance, 10, 511, 10.1016/S0378-4266(86)80003-6 · DOI · Paper page
  67. Leland, 1977, Information asymmetries, financial structure and financial intermediation, Journal of Finance, 32, 371, 10.2307/2326770 · DOI · Paper page
  68. Merton, 1995, Financial innovation and the management and regulation of financial institutions, Journal of Banking and Finance, 19, 461, 10.1016/0378-4266(94)00133-N · DOI
  69. Miller, 1995, Do the M&M propositions apply to banks?, Journal of Banking and Finance, 19, 483, 10.1016/0378-4266(94)00134-O · DOI
  70. Modigliani, 1958, The cost of capital, corporation finance, and the theory of investment, American Economic Review, 261
  71. Myers, 1977, Determinants of corporate borrowing, Journal of Financial Economics, 147, 10.1016/0304-405X(77)90015-0 · DOI · Paper page
  72. Peek, 1994, Bank real estate lending and the New England capital crunch, AREUEA, 22, 33, 10.1111/1540-6229.00625 · DOI
  73. Peek, 1995, The capital crunch: neither a borrower nor a lender be, Journal of Money, Credit and Banking, 27, 10.2307/2077739 · DOI · Paper page
  74. Peek, 1995, Bank regulation and the credit crunch, Journal of Banking and Finance, 19, 679, 10.1016/0378-4266(94)00148-V · DOI · Paper page
  75. Ronn, 1986, Pricing risk-adjusted deposit insurance: an options-based model, Journal of Finance, 41, 871
  76. Ross, 1987, Finance, Vol. 2, 322
  77. Ross, 1989, Institutional markets, financial marketing, and financial innovation, Journal of Finance, 44, 541, 10.1111/j.1540-6261.1989.tb04377.x · DOI · Paper page
  78. Santomero, 1977, Determining an optimal capital standard for the banking industry, Journal of Finance, 32, 1267, 10.1111/j.1540-6261.1977.tb03325.x · DOI
  79. Szegö, 1995, Risk-based capital in the European Economic Community, Journal of Banking and Finance, 19, 727, 10.1016/0378-4266(94)00154-U · DOI
  80. Thakor, 1995, Capital requirements, loan renegotiation, and the borrower's choice of financing source, Journal of Banking and Finance, 19, 693, 10.1016/0378-4266(94)00149-W · DOI
  81. Thomson, 1991, Predicting bank failures in the 1980s, Federal Reserve Bank of Cleveland Economic Review, 27, 9
  82. Townsend, 1979, Optimal contracts and competitive with costly state verification, Journal of Economic Theory, 21, 265, 10.1016/0022-0531(79)90031-0 · DOI · Paper page
  83. Wall, 1987, The effect of capital adequacy guidelines on large bank holding companies, Journal of Banking and Finance, 11, 581, 10.1016/0378-4266(87)90004-5 · DOI
  84. Wall, 1995, Bank holding company capital targets in the early 1990s: the regulators versus the markets, Journal of Banking and Finance, 19, 563, 10.1016/0378-4266(94)00139-T · DOI

Cited by

See all 980

Metadata

Authors
Berger, A. N., Herring, R. J., & Szegö, G. P.
Venue
Journal of Banking & Finance
Publisher
Elsevier BV
Published
1995-06
Volume
19
Issue
3-4
Pages
393-430
ISSN
0378-4266 (ISSN-L)
OpenAlex
W1977847404
Cited by
980
References
6
FWCI
26.84
Type
journal article
Language
en
Open access
hybrid
Licence

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.