Bank capital, lending, and regulation: A meta-analysis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F24%3A10474709" target="_blank" >RIV/00216208:11230/24:10474709 - isvavai.cz</a>

Alternative codes found

RIV/00216224:14560/24:00135116 RIV/61989100:27510/24:10253015 RIV/61384399:31110/24:00060622

Result on the web

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=29rFDn6emh" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=29rFDn6emh</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1111/joes.12560" target="_blank" >10.1111/joes.12560</a>

Result language

angličtina

Original language name

Bank capital, lending, and regulation: A meta-analysis

Original language description

We collected over 1600 estimates on the relationship between bank capital and lending and construct 40 variables to capture the context in which these estimates are obtained. Accounting for potential publication bias, we find that a 1 percentage point (pp) increase in capital (regulatory) ratio results in around 0.3 pp increase in annual credit growth, while changes to capital requirements cause a decrease of around 0.7 pp. Using Bayesian and frequentist model averaging, we show that the relationship between bank capital and lending changes over time, reflecting the post-crisis period of increasingly demanding bank capital regulation and subdued profitability. We also find that the reported estimates of semi-elasticities are significantly influenced by the empirical approach chosen by researchers. Our findings suggest that the literature fails to provide policymakers with reliable estimates of the effects of capital regulation on bank lending, and our study offers insights that could help guide future research.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Economic Surveys

ISSN

0950-0804

e-ISSN

1467-6419

Volume of the periodical

38

Issue of the periodical within the volume

3

Country of publishing house

GB - UNITED KINGDOM

Number of pages

29

Pages from-to

823-851

UT code for WoS article

000978424400001

EID of the result in the Scopus database

2-s2.0-85157964292