Quarterly Studies in Banking Management and Islamic Banking

Effects of prudential regulation on capital on risk-taking due to the moderating role of capital efficiency in banks and financial institutions listed on the Tehran Stock Exchange based on capital Buffer theory

Document Type : Original Article

Author

Vahid Bekhradi Nasab

Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran

https://doi.org/10.22034/jifb.2021.284771.1269
Abstract
The main purpose of this study is the relationship between prudential regulation of capital and banks' risk-taking with the moderating role of investment efficiency. The statistical population is all banks and financial institutions listed on the Tehran Stock Exchange. The research period includes the years 1391 to 1397. To achieve this goal, data from 20 banks were used. In this study, it has been shown that with investment efficiency, prudential regulations increase banks' capital and reduce their risk-taking. Prudential regulations also increase the prudential behavior of banks by reducing risk and increasing the capital of banks, which indicates that most of the country's banks in recent years have moved in line with regulatory frameworks and international regulations.

Keywords

Prudential regulation of capital
risk-taking
investment efficiency
banks and financial institutions
Tehran Stock Exchange

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