ABSTRACT This study examines the reaction of Korean banks’ procyclical behaviour to the adoption of the Basel III accord, which imposes a global capital framework on banks, and the sensitivity of Korean banks’ reactions depending on their capital structures prior to the adoption of the accord. Employing the random-effects panel data approach, we find that the procyclicality of banks, in terms of the capital adequacy ratio, profitability, and insolvency risk, is mitigated after the adoption of the accord. This change is only evident for banks with low capital adequacy ratios before the regulatory reform. Our findings suggest that the Basel III accord effectively mitigates bank procyclicality and that banks’ sensitivity to the reform becomes greater when their capital adequacy ratios are lower. The policy implications of the adoption in emerging and transitional economies are discussed, given the heterogeneous reaction of Korean banks to the international regulatory reform.

中文翻译：

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银行对国际监管改革的敏感性：韩国的情况

摘要这项研究考察了韩国银行的顺周期行为对采用巴塞尔协议III的反应，该协议对银行强加了全球资本框架，以及韩国银行的反应的敏感性取决于采用该协议之前的资本结构。采用随机效应面板数据方法，我们发现采用该协议后，就资本充足率，获利能力和破产风险而言，银行的顺周期性得到了缓解。只有在监管改革之前资本充足率较低的银行，这种变化才显而易见。我们的研究结果表明，《巴塞尔协议III》有效地缓解了银行的顺周期性，并且当资本充足率较低时，银行对改革的敏感性也会提高。