Proceedings of the 2013 International Conference on the Modern Development of Humanities and Social Science

A Study on Bank Risk-Taking Behaviors under the Capital Regulation and Constraints of Bank Asset Allocation Strategies

Authors
Zhiheng Xue, Kui Yin, Ying Zhang
Corresponding Author
Zhiheng Xue
Available Online December 2013.
DOI
https://doi.org/10.2991/mdhss-13.2013.14How to use a DOI?
Keywords
capital regulation asset allocation commercial bank
Abstract
It is controversial that whether capital regulation can really reduce the risk of banks. This paper studied the assets allocation behaviors of banks under supervision and explores the effectiveness of capital regulation based on bank asset allocation strategies. We built a linear programming model to find a certain bank’s asset allocation strategies under regulation. Then we established relationship between bank’s profit and risk to study bank’s risk taking behavior. We found that profit and risk are not exactly positively related and that banks need to make strategies based on its goal—maximum profit or minimum risk. The innovation of this paper lies in asset allocation strategies and linear programming solution.
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Proceedings
2013 International Conference on the Modern Development of Humanities and Social Science
Part of series
Advances in Intelligent Systems Research
Publication Date
December 2013
ISBN
978-90786-77-90-1
DOI
https://doi.org/10.2991/mdhss-13.2013.14How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Zhiheng Xue
AU  - Kui Yin
AU  - Ying Zhang
PY  - 2013/12
DA  - 2013/12
TI  - A Study on Bank Risk-Taking Behaviors under the Capital Regulation and Constraints of Bank Asset Allocation Strategies
BT  - 2013 International Conference on the Modern Development of Humanities and Social Science
PB  - Atlantis Press
UR  - https://doi.org/10.2991/mdhss-13.2013.14
DO  - https://doi.org/10.2991/mdhss-13.2013.14
ID  - Xue2013/12
ER  -