Do Financial Sector Structure and Development Matter for the Effect of Bank Capital on Lending in Large EU Banks?
Main Article Content
Abstrakt
The paper aims at finding out what is the impact of bank capital ratios on loansupply in the EU and what factors explain the potential diversity of this impact.Applying the Blundell and Bond (1998) two step GMM estimator, we find that in thefull sample of large banks the role of capital ratio on loan growth in contractionsis relatively weak. However, if we take into account the differences in financial sector structure and development between EU countries, we find that the effectof capital ratio on lending is positive and statistically significant. Therefore, ourresults suggest that capital ratios are an important determinant of lending in thelarge EU banks in those countries where financial sector is more dominated bystock markets of is better developed. Thus, our results provide support for theview that more financially developed economies are prone to greater procyclicalimpact of capital ratios on lending of banks.
Downloads
Article Details
Autor (Autorzy) artykułu oświadcza, że przesłane opracowanie nie narusza praw autorskich osób trzecich. Wyraża zgodę na poddanie artykułu procedurze recenzji oraz dokonanie zmian redakcyjnych. Przenosi nieodpłatnie na Oficynę Wydawniczą SGH autorskie prawa majątkowe do utworu na polach eksploatacji wymienionych w art. 50 Ustawy z dnia 4 lutego 1994 r. o prawie autorskim i prawach pokrewnych – pod warunkiem, że praca została zaakceptowana do publikacji i opublikowana.
Oficyna Wydawnicza SGH posiada autorskie prawa majątkowe do wszystkich treści czasopisma. Zamieszczenie tekstu artykuły w repozytorium, na stronie domowej autora lub na innej stronie jest dozwolone o ile nie wiąże się z pozyskiwaniem korzyści majątkowych, a tekst wyposażony będzie w informacje źródłowe (w tym również tytuł, rok, numer i adres internetowy czasopisma).
Osoby zainteresowane komercyjnym wykorzystaniem zawartości czasopisma proszone są o kontakt z Redakcją.
Bibliografia
Beatty A., & Liao S., Do delays in expected loss recognition affect banks’ willingness to lend?,“Journal of Accounting and Economics” 2011, Vol. 51, pp. 1–20.
Beck T., Levine R., Industry growth and capital allocation: does having a market- or bank--based system matter?, “Journal of Financial Economics” 2002, Vol. 64, pp. 147–180.
Beck T., Bank competition and financial stability: Friends or foes?, Policy Research WorkingPaper Series 4656/2008, The World Bank.
Beck T., Demirgüç-Kunt B., Levine R., Financial institutions and markets across countries andover time. Data and analysis, Policy Research Working Paper 4943/2009, World Bank.
Berrospide J. M., Edge R. M., The effects of bank capital on lending: What do we know? AndWhat does it mean?, “International Journal of Central Banking” 2010, December issue,pp. 5–54. http://www.ijcb.org/journal/ijcb10q4a2.pdf also available as working paperat: http://www.federalreserve.gov/pubs/feds/2010/201044/201044pap.pdf
Bikker J. A., Metzemakers P. A. J., Bank provisioning behaviour and procyclicality, “Journal ofInternational Financial Markets, Institutions and Money” 2005, Vol. 15, pp. 141–157.
Blundell R., Bond S., Initial conditions and moment restrictions in dynamic panel datamodel, “Journal of Econometrics” 1998, Vol. 87, pp. 115–143.
Borio C., Zhu V. H., Capital regulation, risk-taking, and monetary policy: A missing link in thetransmission mechanism?, “Journal of Financial Stability” 2012, Vol. 8, pp. 236–251.
Bridges J., Gregory D., Nielsen M., Pezzini S., Radia A., Spaltro M., The impact of capitalrequirements on bank lending, Working Paper No. 486/2014, Bank of England.
Carlson M., Shan H. Warusawitharana M., Capital ratios and bank lending: A matched bankapproach, “Journal of Financial Intermediation” 2013, Vol. 22, pp. 663–687.
Dell’Ariccia, G., Igan D., & Laeven L., Credit booms and lending standards: Evidence fromthe subprime mortgage market, “Journal of Money, Credit and Banking” 2012 Vol. 44,No. 23, pp. 367–384.
DIRECTIVE 2013/36/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILof 26 June 2013 on access to the activity of credit institutions and the prudentialsupervision of credit institutions and investment firms, amending Directive 2002/87/ECand repealing Directives 2006/48/EC and 2006/49/EC (L 176).
Gambacorta L., Marqués-Ibáñez D., The bank lending channel. Lessons from the crisis,Working Paper Series No 1335/May 2011, European Central Bank.
Labonne C., Lame G., Credit growth and bank capital requirements: binding or not?,WorkingPaper 2014 https://www.banque-france.fr/fileadmin/user_upload/banque_de_france/Economie_et_Statistiques/Credit-growth-and-bank-capital-requirementsbinding-or-not.pdf
Lenart Ł., Pipień M., Almost periodically correlated time series in business fluctuations analysis,“Acta Physica Polonica” A 123 (3)/2013, pp. 70–86.
Myers S., Majluf N., Corporate financing and investment decisions when firms have informationthat investors do not have, “Journal of Financial Economics” 1984, Vol. 13,pp. 187–221.
Olszak M., Pipień M., Kowalska I., Roszkowska S., The effects of capital on bank lendingof large EU Banks? The role of procyclicality, income smoothing, regulations and supervision,“Faculty of Management Working Paper Series” 2014, Vol. 5, retrieved from:papers.ssrn.com/sol3/papers.cfm?abstract_id=2543675.
REGULATION (EU) No 575/2013 OF THE EUROPEAN PARLIAMENT AND OF THECOUNCIL of 26 June 2013 on prudential requirements for credit institutions andinvestment firms and amending Regulation (EU) No 648/2012 (L 176).
Roodman D., Practitioners Corner: A note on the theme of too many instruments, “OxfordBulletin of Economics and Statistics” 2009, Vol. 71, pp. 135–156.
Van den Heuvel S. J., Banking conditions and the effects of monetary policy: evidence fromU. S. States, Federal Reserve Board, Working Paper, 2011.
Volk, M., & Trefalt, P. Access to Credit as Growth Constraint, “Journal of Banking and FinancialEconomics” 2014, Vol. 1, No. 1, pp. 29–39.