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dc.contributor.authorHarris, Alexander S.
dc.date.accessioned2020-08-28T10:33:42Z
dc.date.created2020-05
dc.date.issued2020-06-17
dc.date.submitted2020
dc.identifier.citationHarris, Alexander S. 2020. Does More Capital Make Banks Safer? Market-Based Evidence From the 2011 European Banking Authority Capital Exercise. Bachelor's thesis, Harvard College.
dc.identifier.urihttps://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37364704*
dc.description.abstractI exploit the 2011 EBA Capital Exercise as a quasi-natural experiment to estimate the impact of higher capital requirements on six market measures of bank risk, using difference-in-differences and matching strategies. I find that the Capital Exercise triggered significant increases in the risk of Capital Exercise banks relative to non–Capital Exercise banks according to four of the six risk measures, contrary to the predictions of standard financial theory. Moreover, among Capital Exercise banks, I find that the Capital Exercise generated larger increases in risk for more undercapitalized banks. These results are robust to potential confounders from pre-existing trends and the European sovereign debt crisis. My results indicate that policymakers must beware the signaling effects of raising capital requirements, particularly in times of crisis.
dc.description.sponsorshipApplied Mathematics
dc.description.sponsorshipApplied Mathematics
dc.format.mimetypeapplication/pdf
dc.language.isoen
dash.licenseLAA
dc.titleDoes More Capital Make Banks Safer? Market-Based Evidence From the 2011 European Banking Authority Capital Exercise
dc.typeThesis or Dissertation
dash.depositing.authorHarris, Alexander S.
dc.date.available2020-08-28T10:33:42Z
thesis.degree.date2020
thesis.degree.grantorHarvard College
thesis.degree.grantorHarvard College
thesis.degree.levelUndergraduate
thesis.degree.levelUndergraduate
thesis.degree.nameAB
thesis.degree.nameAB
dc.type.materialtext
thesis.degree.departmentApplied Mathematics
thesis.degree.departmentApplied Mathematics
dash.identifier.vireo
dash.author.emailalex8harris@gmail.com


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