Serial number: 12/2013
Author(s): K. Heydarov
Language: Azerbaijani
Date: 2013
Abstract: This paper examines the impact of capital on the profitability and risk of Azerbaijani banks using monthly data from 2009, m2 to 2012, m12. To address the research questions we employ two-step methodology: (i) to test the impact of capital on Azerbaijani banks profitability; (ii) to estimate the impact of capital on banks risk. The main findings suggest that bank capital appears to improve profitability and reduce risk. The results of this study may present some value for Azerbaijani regulators and bank managers in terms of financial stability.
Key words: Bank capital, profitability, risk, regulations
JEL classification: G28, G21