Bank capital and lending: An analysis of commercial banks in the United States

Sudipto Karmakar and Junghwan Mok

Economics Letters, 2015, vol. 128, issue C, 21-24

Abstract: We evaluate the relationship between capital ratios and business lending of commercial banks in the United States. Using two different measures of capital, we find a moderate relationship between capital ratios and business lending. We also propose an innovative instrumenting technique to overcome common endogeneity problems.

Keywords: Tier 1 ratio; Capital adequacy ratio; Business lending (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Bank Capital and Lending: An Analysis of Commercial Banks in the United States (2013)
Working Paper: Bank Capital and Lending: An Analysis of Commercial Banks in the United States (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:128:y:2015:i:c:p:21-24

DOI: 10.1016/j.econlet.2015.01.002

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