The remainder of our paper is structured as follows: Section 2 provides an overview of the research related to bank solvency and natural disasters, and further outlines the contribution of this study in the context of the existing literature. [...] Section 6 discusses our results and explores both the affectedness of specific types of banks from natural disasters as well as the suitability of the accounting capital ratio and the regulatory capital ratio to assess this effect. [...] These include: the level of national development, measured as the natural logarithm of a country’s annual real GDP per capita; economic growth, measured as the annual growth in the real GDP, and the credit activity of a country measured as the growth of credit to the private sector. [...] In the sub-sample of non-US banks, the coefficients of the damage ratio in the 0.25 and 0.50 quantile regressions are not significant, but become significantly negative in the 0.75 quantile. [...] We therefore regress the change in the equity ratio of the current year against the damage ratio of the previous year (Damage ratiot-1).
Authors
- Pages
- 48
- Published in
- Canada
