Abstract With the liberalization and globalization, the scope for banks is much more sophisticated in decade. Accompanied with Asian Financial Crisis, the Non-Performing Loan (NPL) ratio of domestic financial institutions has increased significantly. Consequently, this research adopts 2SLS to estimate simultaneous equations and examines the impact of risk-based capital regulation on NPL ratio and operating performance. The empirical results are summarily as following: 1. There exists a negative relationship between capital adequacy ratio and NPL ratio, which means that the higher the capital adequacy ratio is, the lower the NPL loan will be. Therefore, adopting the capital regulation will be helpful to improve the balance-sheet structure. 2. With the change of capital adequacy ratio, ROE moves in the same direction; that is, there is a positive relationship between capital adequacy ratio and ROE. Usually, the high-profit companies have more cash flow to support the capital requirement. 3. Examining the effectiveness of ¡§First-Stage Financial Reform Policy¡¨, we find that only 12% and 26% of the banks are not qualified for capital adequacy ratio and NPL ratio, respectively.. Thus, the ¡§First-Stage Financial Reform Policy¡¨ has achieved the preliminary goal. 4. We adopt t-test to distinguish whether the difference between actual and standard figures is significantly large for those disqualified banks. It shows that the main factor might be because of the essential problem of bad asset-debt structure, and not the lack of time to adapt themselves to the new regulation.

Historically, banks have always had a central role in the economy. Their decisions do not only affect their shareholders and customers but the whole economic system. As a consequence, the financial crisis of 2007-2008 has shown that bank management is a huge matter and that the failure of one bank can affect tremendously the whole banking system and the economy. For these reasons, banks need to be regulated by external organisations that constrain them to adjust their regulatory capital via their risk weighted assets. This paper examines the significant factors of the spread between the scenarios on Common Equity Tier 1 (CET1) of the 2016 stress test for EU banks. CET1 is a component of capital adequacy ratio and measures the connections between capital euntens’ris-weighted assets. On a methodological standpoint, this research is based on a positivist approach this meaning that a quantitative analysis has been performed. The sample used in this research is composed of 51 banks from 15 countries across EU and European Economic Area. All of these banks have been analysed by the European Banking Authority (EBA) which has conducted stress test in order to assess CET1 as regards to Basel III framework. The researchers have elaborated a conceptual model in order to select the most relevant variables that might affect the spread of CET1. The hypotheses are based on previous researches and take into account the following independent variables: Size, Stock Exchange Listed, Leverage ratio, Loans on Assets, Net Interest Margin, Risk-Weighted Assets to Total Assets and Profitability. Simple linear regression and multiple linear regressions have been performed to test the impact of all the independent variables on the spread of CET1. The statistical analyses have revealed that there are no significant relationships between the selected variables, except for size that has a significant negative impact on the spread as part of the multiple regression. Therefore, none of the hypotheses can be supported. These results provide new insights in the banking sector and to a larger extent for finance. They may be considered as a basis for future research on the spread of CET1.

For the evaluation of banks¡¦ performance, non-performing loans ratio and capital adequacy ratio are the two major indicators other than earnings performance. Among the various tools for earnings manipulation, loan loss provisions may be the only one that could affect bank¡¦s earning numbers, non-performing loans ratio and capital adequacy ratio simultaneously. In order to satisfy the need to increase earnings and capital adequacy ratio and to decrease non-performing loans ratio, banks may have motivation to conduct earnings management. The purpose of the study is thus to investigate whether there is a relationship between the earnings management by using the discretionary loan loss provisions and the earnings before loan loss provisions, non-performing loans ratio, capital adequacy ratio, asset size, loan growth rate, and loans uncollected. In addition, the study divides the sample banks into the following categories: (1) commercial banks versus others, (2) new banks versus old banks (based on the time the bank was founded), and (3) state-run versus non-state-run (based on whether the president of the bank is appointed by the government). The study also intends to examine whether earnings management conducted by the bank¡¦s management is different between the various categories. Based on the empirical results from the Taiwan Economics Journal (TEJ) database, the study found: (1) the three variables of earnings before loan loss provisions, asset size, and loans uncollected are significantly related to the earnings management by using discretionary loan loss provisions, and the higher the three variables, the higher the degree of earnings management; (2) non-performing loans ratio, capital adequacy ratio, and loan growth rate are not found to be significantly related to the earnings management by using discretionary loan loss provisions; (3) state-run banks have conducted more earnings management than non-state-run banks; and (4) there is no significant result found in other analyses for other categories.

This thesis shows the changes the new Basel III banking regulation from the original Basel II regulation in Czech and European legislation. The next section brings the results of foreign studies concerning the effect of changes in spreads on lending rates, gross domestic product and unemployment. These studies are based on various input data and assumptions. The practical part analyzes three selected Czech banks through scenarios and identifies possible impact of the new regulation in lending rates in 2012 - 2019th.

Background: Fifteen years after the Global Financial Crisis, and four years after the enactment of the Basel III Accord, our thesis aims to answer how banks adapted to the new capital requirements. The core objective of the Basel Committee of Banking Supervision was to improve regulation and supervision and address the previous legislation deficiencies. Capital adequacy requirements are crucial parts of the code in preventing national economies from recessions and making the banking sector more resilient. Purpose: Investigate how banks adapted to the increased capital requirements and what strategies did they use to fulfil the new rules? What are the implications of these changes on the business volumes of the banks?                 Method: Decomposing changes in the capital adequacy ratio and dummy variable regression analysis to control for systematic differences in the development of sample banks' business volumes across categories. Conclusion: The results show that the 1.7 percentage increase in risk-weighted capital ratio originated mainly from higher capital accumulation rather than lower risk weights or smaller asset volumes. Starting capital ratio and the change in capital ratio tend to slow the increase of business volumes. However, the net income to total assets ratio likely accelerated the exposure. Significant divergencies in the coefficients of the explanatory variables indicate a systematic difference in the sample banks' strategies in adapting to the stricter regulatory requirements.

Dans l'industrie bancaire, plusieurs études ont montré l'existence de la gestion du ratio de solvabilité. Toutefois, elles se sont focalisées pour l'essentiel sur la manipulation des provisions et avancent généralement que la gestion du ratio de solvabilité est mise en œuvre en vue d'éviter les coûts réglementaires associés à un ratio inférieur au seuil minimum. Notre thèse examine la pratique de gestion du ratio de solvabilité à travers les ajustements prudentiels qui sont des retraitements que la banque doit opérer pour passer des fonds propres comptables aux fonds propres réglementaires. Les ajustements prudentiels sont composés de déductions et de filtres prudentiels destinés à atténuer l'impact de la volatilité des fonds propres induite par la juste valeur liée à l'application des IFRS. Adoptant une démarche diachronique et une approche instrumentale, l'étude se base sur un échantillon de banques européennes et utilise des méthodes de régression par données de panel, ainsi que des tests de robustesse tels que le bootstrap et la régression quantile. Le principal apport de cette thèse est de montrer que la transformation de l'information comptable en information réglementaire passe par les ajustements prudentiels qui constituent un pont sur lequel une gestion opportuniste du ratio de solvabilité peut être effectuée à travers des variables relatives à la qualité du capital et à la performance opérationnelle de la banque. L'étude montre que la gestion du capital n'est pas l'exclusivité des banques présentant un ratio faible. Enfin, elle permet de ne plus considérer le ratio de solvabilité comme une boîte noire et de l'examiner à travers ses composantes. / Through Earnings Management practices applied to banking industry, several studies have shown existence of Capital Adequacy Ratio Management (CARM). However, they are mainly focused on loss loan provision (LLP) manipulation's and suppose that Capital adequacy ratio management motivation is to reduce regulatory costs imposed when the bank's capital adequacy ratio falls below the minimum. This thesis deals with the possibilities of banks to manage the regulatory ratio via the prudential adjustments, which are corrections made to equity items in the statement of financial position, to safeguard the quality of the supervisory capital and to reduce potential volatility induced by fair value accounting (application of IFRS). Adopting diachronic and instrumental approaches, the study is based on a sample of European banks and uses regression methods by panel data and bootstrap and quantile regression as post estimation and robustness tests. The main contribution of this thesis is to show that the necessary transformation of accounting information into regulatory information by prudential adjustments constitutes a bridge on which a timely CARM could be carried out through variables relating to the quality of the capital and the operational performance of the bank. Furthermore, the results show that CARM is not exclusively dedicated to banks with ratio close to minimum. Finally the results make possible to no longer consider the capital adequacy ratio as a black box and to examine it through its components.

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This research paper focuses on whether Taiwan's 13 financial holding companies (excluding Waterland Financial Holdings) belongs to the bank's capital management efficiency, using a narrow definition of capital. First, do a preliminary analysis of the capital of the banks first, second, and three types of capital. Secondly, the use of supplementary items in the balance sheet, profit and loss account and balance-sheet and some of the information into the banking book assets and liabilities of the banking book and trading book assets, trading book liabilities, risk assets and market value-added and other programs in order to do all kinds of bank trend analysis of assets and liabilities and capital management. Finally, I would investigate whether the high capital adequacy ratio that their performance is better? The provisions of the Basel ¢º want to improve the bank's risk management capability, however, and set out the statutory capital requirements of the Bank help to keep the emphasis on risk management?

>Magister Scientiae - MSc / The Basel Committee published its proposals for a revised capital adequacy framework(the Basel II Capital Accord) in June 2006. One of the main objectives of this framework is to improve the incentives for state-of-the-art risk management in banking, especially in the area of credit risk in view of Basel II. The new regulation seeks to provide incentives for greater awareness of differences in risk through more risk-sensitive minimum capital requirements based on numerical formulas. This attempt to control bank behaviour has a heavy reliance on regulatory ratios like the risk-based capital adequacy ratio (CAR). In essence, such ratios compare the capital that a bank holds to the level of credit, market and operational risk that it bears. Due to this fact the objectives in this dissertation are as follows. Firstly, in an attempt to address these problems and under assumptions about retained earnings, loan-loss reserves, the market and shareholder-bank owner relationships, we construct continuous-time models of the risk-based CAR which is computed from credit and market risk-weighted assets (RWAs) and bank regulatory capital (BRC) in a stochastic setting. Secondly, we demonstrate how the CAR can be optimized in terms of equity allocation. Here, we employ dynamic programming for stochastic optimization, to obtain and verify the results. Thirdly, an important feature of this study is that we apply the mean-variance approach to obtain an optimal strategy that diversifies a portfolio consisting of three assets. In particular, chapter 5 is an original piece of work by the author of this dissertation where we demonstrate how to employ a mean-variance optimization approach to equity allocation under certain conditions.