The Impact of the Financial Crisis on Bank Capital Strucutre

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
• 2 Background
  • 2.1 Bank Capital Structure
  • 2.2 The Financial Crisis
• 3 Data, Variables and Descriptive Statistics
• 4 Methodology and Results
  • 4.1 Baseline Model
  • 4.2 Model Modification and Crisis Indicators
  • 4.3 Insights on Liabilities
• 5 Discussion
• 6 Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master's thesis examines the impact of the global financial crisis on bank capital structure. The study utilizes a longitudinal sample of 483 banks in the United States and Europe from 2004 to 2015, employing a modified Gropp and Heider (2010) model. The key objectives are to analyze the determinants of bank capital structure, investigate the impact of the financial crisis on these determinants, and assess the responses of bank capital structure to the crisis.

• Bank capital structure and its determinants
• Impact of the financial crisis on bank capital structure
• Response of bank capital structure to the financial crisis
• Effects of the financial crisis on bank liabilities
• Comparison of pre-crisis and crisis periods

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter sets the stage for the thesis, highlighting the significance of the global financial crisis and its impact on various economic sectors. It introduces the specific focus on bank leverage ratios and the research questions driving the study.
• Chapter 2: Background This chapter provides a theoretical foundation for the research, outlining the concept of bank capital structure and exploring the financial crisis in detail. The chapter delves into the key factors influencing bank capital structure, establishing a framework for subsequent analysis.
• Chapter 3: Data, Variables and Descriptive Statistics This chapter describes the data used in the research, including the sample period, bank selection criteria, and the specific variables used in the analysis. It presents descriptive statistics that provide an overview of the data and key trends within the sample.
• Chapter 4: Methodology and Results This chapter details the methodological approach adopted for the study. It introduces the modified Gropp and Heider (2010) model, explains how this model is used to analyze the data, and presents the key findings of the research. The chapter focuses on the impact of the financial crisis on leverage determinants and the overall response of bank capital structure.
• Chapter 5: Discussion This chapter offers a detailed discussion of the research findings, providing interpretations of the results in light of existing literature and theoretical frameworks. It explores potential implications of the findings and identifies areas for further research.

Schlüsselwörter (Keywords)

The study focuses on the impact of the global financial crisis on bank capital structure, analyzing leverage ratios and their determinants. Key concepts include bank capital structure, leverage determinants, financial crisis, linear two-way error component models, Gropp and Heider model, and the impact of macroeconomic shocks on the banking sector. The study explores the differences between pre-crisis and crisis periods, examining the responses of banks to the financial crisis.