Does banks' systemic importance affect their capital structure and balance sheet adjustment processes?

Yassine Bakkar (), Olivier De Jonghe and Amine Tarazi
Additional contact information
Yassine Bakkar: LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges

Working Papers from HAL

Abstract: Frictions prevent banks to immediately adjust their capital ratio towards their desired and/or imposed level. This paper analyzes (i) whether or not these frictions are larger for regulatory capital ratios vis-à-vis a plain leverage ratio; (ii) which adjustment channels banks use to adjust their capital ratio; and (iii) how the speed of adjustment and adjustment channels differ between large, systemic and complex banks versus small banks. Our results, obtained using a sample of listed banks across OECD countries for the 2001-2012 period, bear critical policy implications for the implementation of new (systemic risk-based) capital requirements and their impact on banks' balance sheets, specifically lending, and hence the real economy.

Keywords: capital structure; speed of adjustment; systemic risk; systemic size; bank regulation; lending; balance sheet composition (search for similar items in EconPapers)
Date: 2017-11-16
New Economics Papers: this item is included in nep-ban
Note: View the original document on HAL open archive server: https://unilim.hal.science/hal-01636253v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://unilim.hal.science/hal-01636253v1/document (application/pdf)

Related works:
Journal Article: Does banks’ systemic importance affect their capital structure and balance sheet adjustment processes? (2023)
Working Paper: Does banks’ systemic importance affect their capital structure and balance sheet adjustment processes? (2023)
Working Paper: Does banks’ systemic importance affect their capital structure and balance sheet adjustment processes? (2022)
Working Paper: Does banks' systemic importance affect their capital structure and balance sheet adjustment processes? (2019)
Working Paper: Does banks’ systemic importance affect their capital structure and balance sheet adjustment processes? (2019)
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:hal:wpaper:hal-01636253

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().