Pro-Cyclical Banking Leverage in France: On its Existence and Management

Carmela D'Avino

MPRA Paper from University Library of Munich, Germany

Abstract: The paper proposes several facts in support of the evidence that French banks actively manage their leverage. Impulse responses estimated from multivariate models allow assessing which balance sheet claims are used by banks to fine-tune their leverage. It is found that leverage adjustments are primarily attained through changes in domestic and foreign credit. The dynamic pattern of leverage is less affected by shocks to securities holdings, implying that the amplifying mechanism on the real economy that occurs via leverage adjustment is expected to work directly via bank credit rather than via asset markets.

Keywords: Banks; financial-real sector linkages; leverage management; shock transmissions. (search for similar items in EconPapers)
JEL-codes: G2 G21 (search for similar items in EconPapers)
Date: 2013-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Applied Finance & Banking 5.5(2015): pp. 185-199

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/69056/1/MPRA_paper_69056.pdf original version (application/pdf)

Related works:
Journal Article: Pro-Cyclical Banking Leverage in France: On its Existence and Management (2015)
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:pra:mprapa:69056

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().