For instance, in Azerbaijan, Russia and in other CIS countries it is required to have certain amount of common equity capital in order to establish a bank. In Azerbaijan it is now 50 million euros. Is this regulation tool also applicable in Europe, UK and USA?
HI,
The regulation seems to be much more complicated in Europe (recommendations of The Basle Committee III), but you may have a look to this paper:
Do Banks Issue Equity When They Are Poorly Capitalized?
By: Dinger, Valeriya; Vallascas, Francesco.
Journal of Financial & Quantitative Analysis. Oct2016, Vol. 51 Issue 5, p1575-1609. 35p. DOI: 10.1017/S0022109016000545.
Sujets: Bank capital; Seasoned equity offerings; FINANCE; Moral hazard; Commercial Banking; Personal and commercial banking industry; Savings Institutions; Other Depository Credit Intermediation; Consumer Lending; Bank loans -- Economic aspects; Banking industry; Decision making -- Economic aspects; Debt -- Economic aspects; Bank management -- Economic aspects
Berst regards
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