Banks and capital requirements: channels of adjustment

Benjamin Cohen and Michela Scatigna ()

No 443, BIS Working Papers from Bank for International Settlements

Abstract: Bank capital ratios have increased steadily since the financial crisis. For a sample of 94 large banks from advanced and emerging economies, retained earnings account for the bulk of their higher risk-weighted capital ratios, with reductions in risk weights playing a lesser role. On average, banks continued to expand their lending, though lending growth was relatively slower among European banks. Lower dividend payouts and (for advanced economy banks) wider lending spreads have contributed to banks’ ability to use retained earnings to build capital. Banks that came out of the crisis with higher capital ratios and stronger profitability were able to expand lending more.

Keywords: banks; bank capital; regulation; capital ratios; Basel III (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-03
New Economics Papers: this item is included in nep-ban, nep-cba, nep-reg and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Journal Article: Banks and capital requirements: Channels of adjustment (2016)
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