This research examined the trade-off between risk and profitability under Basel III capital regulation (BCR) using a sample of 30 commercial banks in Lebanon. The main question of this research is: What is the trade-off between risk and profitability under Basel III capital regulation (BCR)? To answer this question, the authors considered a qualitative approach in the study. The authors used semi-structured interviews with the chief risk officer (CRO) for the sample. In order to examine the impact of Basel III capital regulation (BCR) on risk and profitability, the authors asked Banks’ CFOs to rate risk and profitability based on 5 scale metrics before and after the application Of Basel III in Lebanon. To analyze the data, the authors used ATLAS. Ti version 8.3 software. The results showed that after the application of the Basel III accord in Lebanon risk and profitability decreased in banks. The authors also noticed this effect is much greater in small and high-risk banks. This result aligns with Klomp and de Haan's findings that the Basel III accord has more effect on small and high-risk banks and with Tran, Lin, and Nguyen’s findings that the relationship between capital regulation and bank performance is not linear and depends on the level of capitalization of banks.
| Published in | International Journal of Business and Economics Research (Volume 13, Issue 6) |
| DOI | 10.11648/j.ijber.20241306.14 |
| Page(s) | 175-184 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Basel III Capital Regulation (BCR), Banking Risk, Banking Profitability, ATLAS. Ti Version 8.3 Software
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APA Style
Alfouhaili, N., Alhilfi, T. (2024). The Trade-off Between Banking Risk and Profitability Under Basel III Capital Regulation in Lebanese Banks. International Journal of Business and Economics Research, 13(6), 175-184. https://doi.org/10.11648/j.ijber.20241306.14
ACS Style
Alfouhaili, N.; Alhilfi, T. The Trade-off Between Banking Risk and Profitability Under Basel III Capital Regulation in Lebanese Banks. Int. J. Bus. Econ. Res. 2024, 13(6), 175-184. doi: 10.11648/j.ijber.20241306.14
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Download@article{10.11648/j.ijber.20241306.14,
author = {Nadim Alfouhaili and Thawra Alhilfi},
title = {The Trade-off Between Banking Risk and Profitability Under Basel III Capital Regulation in Lebanese Banks
},
journal = {International Journal of Business and Economics Research},
volume = {13},
number = {6},
pages = {175-184},
doi = {10.11648/j.ijber.20241306.14},
url = {https://doi.org/10.11648/j.ijber.20241306.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20241306.14},
abstract = {This research examined the trade-off between risk and profitability under Basel III capital regulation (BCR) using a sample of 30 commercial banks in Lebanon. The main question of this research is: What is the trade-off between risk and profitability under Basel III capital regulation (BCR)? To answer this question, the authors considered a qualitative approach in the study. The authors used semi-structured interviews with the chief risk officer (CRO) for the sample. In order to examine the impact of Basel III capital regulation (BCR) on risk and profitability, the authors asked Banks’ CFOs to rate risk and profitability based on 5 scale metrics before and after the application Of Basel III in Lebanon. To analyze the data, the authors used ATLAS. Ti version 8.3 software. The results showed that after the application of the Basel III accord in Lebanon risk and profitability decreased in banks. The authors also noticed this effect is much greater in small and high-risk banks. This result aligns with Klomp and de Haan's findings that the Basel III accord has more effect on small and high-risk banks and with Tran, Lin, and Nguyen’s findings that the relationship between capital regulation and bank performance is not linear and depends on the level of capitalization of banks.
},
year = {2024}
}
TY - JOUR T1 - The Trade-off Between Banking Risk and Profitability Under Basel III Capital Regulation in Lebanese Banks AU - Nadim Alfouhaili AU - Thawra Alhilfi Y1 - 2024/12/13 PY - 2024 N1 - https://doi.org/10.11648/j.ijber.20241306.14 DO - 10.11648/j.ijber.20241306.14 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 175 EP - 184 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20241306.14 AB - This research examined the trade-off between risk and profitability under Basel III capital regulation (BCR) using a sample of 30 commercial banks in Lebanon. The main question of this research is: What is the trade-off between risk and profitability under Basel III capital regulation (BCR)? To answer this question, the authors considered a qualitative approach in the study. The authors used semi-structured interviews with the chief risk officer (CRO) for the sample. In order to examine the impact of Basel III capital regulation (BCR) on risk and profitability, the authors asked Banks’ CFOs to rate risk and profitability based on 5 scale metrics before and after the application Of Basel III in Lebanon. To analyze the data, the authors used ATLAS. Ti version 8.3 software. The results showed that after the application of the Basel III accord in Lebanon risk and profitability decreased in banks. The authors also noticed this effect is much greater in small and high-risk banks. This result aligns with Klomp and de Haan's findings that the Basel III accord has more effect on small and high-risk banks and with Tran, Lin, and Nguyen’s findings that the relationship between capital regulation and bank performance is not linear and depends on the level of capitalization of banks. VL - 13 IS - 6 ER -
Department of Business Administration, University Paris 1 Panthéon-Sorbonne, Paris, France
Department of Economic Sciences and Management, University of Tunis El Manar, Tunis, Tunisia
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