Master'sOpen Access

The Impact of Liquidity Risk and Credit Risk on the Capital Adequacy Ratios of USA Banks before and after the 2008 Financial Crises

2016
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Advisor: Hatice Jenkins

Abstract (EN)

The importance of capital adequacy of banks in USA became prominent following the 2008 financial crises. The main objective of this study is to identify the determinants of Capital Adequacy Ratios (CAR) of banks in USA and the role played by both liquidity and credit risk during the crises. This study used the financial information of 30 selected banks over the period of 2004-2011. The panel data analysis and fixed effect model were carried out. The results of the study suggested that both credit risk and liquidity risk ratios have positive and statistically significant impact on CAR of banks in USA.

Author

Dr. Toh Chia Kenneth

How to Cite

Toh Chia Kenneth (Master Thesis). The Impact of Liquidity Risk and Credit Risk on the Capital Adequacy Ratios of USA Banks before and after the 2008 Financial Crises, 2016, Eastern Mediterranean University.

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