Does capital-based regulation affect bank pricing policy?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F22%3A10454638" target="_blank" >RIV/00216208:11230/22:10454638 - isvavai.cz</a>
Alternative codes found
RIV/00216224:14560/22:00125698 RIV/61989100:27510/22:10249821
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=3wS1WI02CO" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=3wS1WI02CO</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s11149-022-09448-5" target="_blank" >10.1007/s11149-022-09448-5</a>
Alternative languages
Result language
angličtina
Original language name
Does capital-based regulation affect bank pricing policy?
Original language description
This paper tests whether a series of changes to capital requirements transmitted to a change to banks' pricing policy. We compile a rich bank-level supervisory dataset covering the banking sector in the Czech Republic over the period 2004-2019. We estimate that the changes to the overall capital requirements did not force banks to alter their pricing policy. The impact on bank interest margins and loan rates is found to lie in a narrow range around zero irrespective of loan category. Our estimates allow us to rule out effects even for less-capitalised banks and small banks. The results obtained contradict estimates from other studies reporting significant transmission of capital regulation to lending rates and interest margins. We therefore engage in a deeper discussion of why this might be the case. Our estimates may be used in the ongoing discussion of the benefits and costs of capital-based regulation in banking.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50201 - Economic Theory
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Regulatory Economics
ISSN
0922-680X
e-ISSN
1573-0468
Volume of the periodical
61
Issue of the periodical within the volume
2
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
33
Pages from-to
135-167
UT code for WoS article
000779802900001
EID of the result in the Scopus database
2-s2.0-85127671346