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- Publisher Website: 10.1016/j.jbankfin.2020.105806
- Scopus: eid_2-s2.0-85083269436
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Article: Bank Capital Requirements and Lending in Emerging Markets: The Role of Bank Characteristics and Economic Conditions
Title | Bank Capital Requirements and Lending in Emerging Markets: The Role of Bank Characteristics and Economic Conditions |
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Authors | |
Keywords | Bank lending Bank regulation Capital requirements Emerging markets |
Issue Date | 2020 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jbf |
Citation | Journal of Banking & Finance, 2020, Epub 2020-03-20, p. article no. 105806 How to Cite? |
Abstract | This paper offers novel evidence on the impact of raising bank capital requirements on lending in an emerging market and explores heterogeneous effects, depending on bank characteristics and economic conditions. Using quarterly bank-level data and exploiting the adoption of bank-specific capital buffers, we find that higher capital requirements are associated with lower credit growth in Peru. But the effect is short-lived and becomes insignificant in about half a year. The impact of capital requirements varies with economic conditions and bank characteristics. The effects is stronger during periods of lower economic growth. Weaker (less profitable, less capitalized and less liquid) banks react more to changes in capital requirements. Our findings are robust to estimating a variety of specification to address concerns about the endogeneity of capital requirements. |
Persistent Identifier | http://hdl.handle.net/10722/281855 |
ISSN | 2023 Impact Factor: 3.6 2023 SCImago Journal Rankings: 1.663 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Fang, X | - |
dc.contributor.author | Jutrsa, D | - |
dc.contributor.author | Peria, SM | - |
dc.contributor.author | Presbitero, AF | - |
dc.contributor.author | Ratnovski, L | - |
dc.date.accessioned | 2020-04-03T07:22:44Z | - |
dc.date.available | 2020-04-03T07:22:44Z | - |
dc.date.issued | 2020 | - |
dc.identifier.citation | Journal of Banking & Finance, 2020, Epub 2020-03-20, p. article no. 105806 | - |
dc.identifier.issn | 0378-4266 | - |
dc.identifier.uri | http://hdl.handle.net/10722/281855 | - |
dc.description.abstract | This paper offers novel evidence on the impact of raising bank capital requirements on lending in an emerging market and explores heterogeneous effects, depending on bank characteristics and economic conditions. Using quarterly bank-level data and exploiting the adoption of bank-specific capital buffers, we find that higher capital requirements are associated with lower credit growth in Peru. But the effect is short-lived and becomes insignificant in about half a year. The impact of capital requirements varies with economic conditions and bank characteristics. The effects is stronger during periods of lower economic growth. Weaker (less profitable, less capitalized and less liquid) banks react more to changes in capital requirements. Our findings are robust to estimating a variety of specification to address concerns about the endogeneity of capital requirements. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jbf | - |
dc.relation.ispartof | Journal of Banking & Finance | - |
dc.subject | Bank lending | - |
dc.subject | Bank regulation | - |
dc.subject | Capital requirements | - |
dc.subject | Emerging markets | - |
dc.title | Bank Capital Requirements and Lending in Emerging Markets: The Role of Bank Characteristics and Economic Conditions | - |
dc.type | Article | - |
dc.identifier.email | Fang, X: xiangf@hku.hk | - |
dc.identifier.authority | Fang, X=rp02587 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jbankfin.2020.105806 | - |
dc.identifier.scopus | eid_2-s2.0-85083269436 | - |
dc.identifier.hkuros | 309665 | - |
dc.identifier.volume | Epub 2020-03-20 | - |
dc.identifier.spage | article no. 105806 | - |
dc.identifier.epage | article no. 105806 | - |
dc.identifier.isi | WOS:000765986200005 | - |
dc.publisher.place | Netherlands | - |
dc.identifier.issnl | 0378-4266 | - |