This research investigates the relationship between Basel capital regulations, bank risk, and bank efficiency in the context of Pakistani and Indian commercial banks. This study examines the period from 2009 to 2022 and specifically analyses the impact of Basel III capital requirements on risk and efficiency. Quantitative methods are employed, utilising data from central bank websites and the BankScope database to construct a comprehensive sample of commercial banks in Pakistan and India. The system-generalised method of moments (GMM) estimation technique addresses potential endogeneity issues in the regression models. The findings shed light on the effectiveness of these regulations and provide insights for policymakers and regulators in both countries. The results indicate that Basel capital regulations have generally increased banks’ risk-taking behaviour in Pakistan and India. However, they have not improved the overall efficiency of the banking sector in either country. Bank efficiency declined during the study period, highlighting the limited effectiveness of Basel capital regulations in enhancing efficiency. Furthermore, the impact of these regulations on risk and efficiency varies between the two countries. In Pakistan, the regulations do not significantly affect bank efficiency, while in India, they decrease efficiency. Additionally, Basel III capital regulations do not significantly impact the risk taken by banks in either country. This study concludes by emphasising the need for alternative mechanisms or policies to improve the banking industry’s efficiency, as Basel capital regulations alone have proven ineffective. The findings offer valuable insights for central banks and regulators in assessing the relationship between capital regulations, risk, and efficiency and implementing appropriate measures to enhance the performance of the banking sector. This study recommends the following key points: the adoption of tailored regulatory approaches to address specific challenges, achieving an optimal balance between risk management and operational efficiency, enhancing the effectiveness of management roles, considering the influence of macroeconomic factors, and evaluating the implications of long-term policy development for sustainable progress. The present study adds to the prevalent literature on the impact of capital regulations on bank risk and efficiency nexus. This study focuses on Pakistan and India, which are two important developing nations. Moreover, another important contribution of this study lies in the effect of Basel III capital regulation on bank risk, as these capital regulations are different from other Basel capital requirements.

Purpose: The purpose of this study is to investigate the impact of leverage, regulatory capital and tier-I capital ratios on the ex ante and ex post risk of Japanese banks.Design/methodology/approach: To test the hypotheses, the authors have implemented a panel of 507 commercial and cooperative banks of Japan over the period extending from 2001 to 2020, using a two-step system Generalized Method of Moments (GMM) framework.Findings: The overall sample banks' results show that the impact of leverage, regulatory capital and tier-I capital ratios on ex ante and ex post risk is positive. The findings reveal that the effects of regulatory and tier-I capital ratios on ex post risk are negative (positive) for commercial (cooperative) banks, high-liquid, low-liquid and high-growth banks in Japan. In addition, the regulatory capital ratio is more beneficial for risk due to its power to absorb losses. The lagged coefficient indicates that banks require more time to adjust their ex post and ex ante risk during crisis period than during normal economic conditions.Practical implications: The heterogeneity in results has practical implications for regulators, policymakers and bank managers in formulating the capital requirement guidelines with respect to ex ante and ex post risk across different categories and characteristics of banks.Originality/value: To the best of the authors' knowledge, this is the first study investigating the impact of leverage, regulatory capital and tier-I capital ratios on the ex ante and ex-post risk of Japanese commercial and cooperative banks over the period from 2001 to 2020. The insights into the impact of leverage, regulatory capital and tier-I capital ratios on the ex ante and ex post risk of well-capitalized, under-capitalized, high and low-liquid banks are new in the context of Japan.

Purpose: The main purpose of this study is to examine dividend theories and factorsfollowed by banks in Pakistan for setting dividend policy from 2005 to 2015.Methodology/Design: Panel regression is used on annual data to check the impact ofdifferent factors on dividend policy of 24 Pakistani banks.Findings: The results of study reveal that banks in Pakistan follow the dividendsmoothing hypothesis, life cycle theory, signaling theory and pecking order theorywhile setting dividend policies. The results also highlight that profitability; investmentopportunities, last year dividend, growth and loan deposit ratio have significantinfluence on dividend policy of Pakistani banks.Implications: In the light of these results, it is recommended that management ofbanks needs to look into these factors while formulating dividend policy of theirrespective banks. By catering these factors they are in a position to set optimaldividend policy which not only fulfills banks’ growth and investment needs, but alsosatisfy investors’ need of return.Limitations: This study uses only listed commercial banks of Pakistan. All other i.e.specialized banks are excluded in this study.

This study examines whether international climate finance advances electricity-sector energy-security transitions in developing economies and whether natural-resource dependence conditions that relationship. Using country-year panel data for the period 2000-2023, across 118 developing economies, the paper estimates two-way fixed-effects models, moderation models, nonlinear specifications, robustness checks, marginal effects, and three-dimensional response surfaces. The results indicate that climate finance is most robustly associated with electricity-sector outcomes: higher finance exposure is linked to stronger renewable-electricity performance, lower fossil-electricity dependence, and lower energy-import exposure. However, the finance-transition relationship is conditional rather than automatic. Natural-resource rents weaken the marginal effect of climate finance, indicating that fossil-fuel lock-in and resource-rent incentives can reduce the effectiveness of external finance. Governance quality also matters because climate finance must pass through public investment systems, utilities, regulators, procurement agencies, and monitoring institutions before it becomes implemented transition capacity. The results indicate that climate finance is positively associated with renewable electricity (beta = 0.5884, p < 0.10). The study contributes to recent green-development debates by linking climate finance to energy security, locating resource dependence as a boundary condition, and presenting coefficient, marginal-effect, and surface-response evidence that can guide policy design.