Journal Article

Bank holding company capital ratios and shareholder payouts


Abstract: Last year's sharp drop in the capital ratios of bank holding companies could cast doubt on the companies' future capital strength, especially if credit quality eroded significantly or if profitability weakened. However, an analysis linking the drop in ratios to bank efforts to increase shareholder payouts in a period of strong profitability suggests that these concerns are premature.

Keywords: Bank holding companies; Bank capital;

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Provider: Federal Reserve Bank of New York

Part of Series: Current Issues in Economics and Finance

Publication Date: 1998

Volume: 4

Issue: Sep

Order Number: 9