EconPapers    
Economics at your fingertips  
 

Risk-Based Capital Requirements for Banks and International Trade

Tomasz Michalski (), Evren Örs and Banu Demir ()

No 11565, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We find that changes in banks' risk-based capital requirements can affect firm-level exports. We exploit the mandatory Basel II adoption in its Standardized Approach by all banks in Turkey on July 1, 2012. This change affects risk-weights for letters of credit and generates two identification schemes with opposite predicted signs. Using data that cover 16,662 exporters shipping 2,888 different products to 158 countries, we find that the share of letter of credit-based exports decreases (increases) at the firm- country-product level when the associated counterparty risk-weights increase (decrease) after Basel II adoption. However, growth of firm-product-country level exports remains unaffected.

Keywords: Basel II; international trade finance; letters of credit (search for similar items in EconPapers)
JEL-codes: F14 G21 G28 (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-ban, nep-cba, nep-int and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11565 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Risk-Based Capital Requirements for Banks and International Trade (2017) Downloads
Working Paper: Risk-Based Capital Requirements for Banks and International Trade (2014) Downloads
Working Paper: Risk-Based Capital Requirements for Banks and International Trade (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11565

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11565

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2022-06-29
Handle: RePEc:cpr:ceprdp:11565