Macroeconomic impact of Basel III: Evidence from a meta-analysis

Jarko Fidrmuc and Ronja Lind

Journal of Banking & Finance, 2020, vol. 112, issue C

Abstract: We present a meta-analysis of the impact of higher capital requirements imposed by regulatory reforms on the macroeconomic activity (Basel III). The empirical evidence derived from a unique dataset of 48 primary studies indicates that there is a negative, albeit moderate GDP effect in response to a change in the target capital ratio. Meta-regression results suggest that the estimates reported in the literature tend to be systematically influenced by a selected set of study characteristics, such as econometric specifications, the authors’ affiliations, and the underlying financial system. Finally, we discuss the publication bias.

Keywords: Meta-analysis; Bayesian model averaging; Publication bias; Banking; Capital requirements; Basel III (search for similar items in EconPapers)
JEL-codes: E44 E51 G28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

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Related works:
Working Paper: Macroeconomic Impact of Basel III: Evidence from a Meta-Analysis (2017)
Working Paper: Macroeconomic Impact of Basel III: Evidence from a Meta-Analysis (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:112:y:2020:i:c:s0378426618301171

DOI: 10.1016/j.jbankfin.2018.05.017

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