Ekonomické rozhľady/Economic Review 3/2021

COUNTERCYCLICAL CAPITAL BUFFER IN THE SLOVAK BANKING SECTOR

NINA SLJUKA[1]

Proticyklický kapitálový vankúš v slovenskom bankovom sektore

https://doi.org/10.53465/ER.2644-7185.2021.3.330-351

 

Abstract: The essence of banks’ capital lies in the protection against potential risks or losses and represents a protective layer for their creditors. Confidence in the banking system generally results from setting the conditions for its regulation. The purpose of regulation is to limit the riskiness of banks in their activities by setting capital requirements that banks must maintain given the volume and structure of their assets. The aim of the paper work is to determine the impact of capital regulation on the profitability and lending behaviour of the Slovak banking sector with a focus on the countercyclical capital buffer. The work is divided into the five parts. It contains two pictures and six tables. The first chapter is devoted to the theoretical definition of the nature and need for regulation of the bank's capital. Within the chapter it‘s characterized the current situation that persists in the Slovak banking sector. The content of the second chapter is a brief review of the literature which studies examined the impact of the introduction of a countercyclical capital buffer on the profitability of commercial banks as well as their lending behaviour. The next part characterizes the aim of the work, used the methods and the methodology of researching the issue. The fourth part deals with the econometric analysis of the change of selected variables with respect to the level of the countercyclical capital buffer in the conditions of the Slovak Republic. The final part is used to evaluate the results and drawing conclusions.

Keywords: countercyclical capital buffer, rentability, lending behaviour, macroprudencial policy

JEL Classification: E58, G21

Fulltext: PDF

Online publication date: 22 September 2021

To cite this article (APA style):

Sljuka, N. (2021). Proticyklický kapitálový vankúš v slovenskom bankovom sektore. Ekonomické rozhľady – Economic Review, 50(3), 330-351. https://doi.org/10.53465/ER.2644-7185.2021.3.330-351

 

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

 

[1] Bc. Nina Sljuka, Ekonomická univerzita v Bratislave, Slovak Republic, e-mail: nina.slukova@gmail.com