EconPapers    
Economics at your fingertips  
 

The Empirics of Balance Sheet Mechanics. Capital and Leverage in Small-scale Banking

Franz Hahn

No 498, WIFO Working Papers from WIFO

Abstract: The prevailing view in the banking industry is that increased bank capital requirements drag down bank lending. This is because capital is assumed to impose higher funding costs on banks than debts. The leading scholarly view in finance maintains the contrary. We are able to present microeconometric evidence in support of the theoretical proposition that the bank capital-bank lending linkage remains positive under a minimum capital requirement regime. Most importantly, the empirical analysis indicates that this finding may hold well in both short and long run.

Keywords: Bank capital; Credit crunch; Minimum capital requirement (search for similar items in EconPapers)
Pages: 15 pages
Date: 2015-04-16
New Economics Papers: this item is included in nep-cba, nep-cfn and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.wifo.ac.at/wwa/pubid/57911 Abstract (text/html)

Related works:
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:wfo:wpaper:y:2015:i:498

Access Statistics for this paper

More papers in WIFO Working Papers from WIFO Contact information at EDIRC.
Bibliographic data for series maintained by Florian Mayr ().

 
Page updated 2022-12-05
Handle: RePEc:wfo:wpaper:y:2015:i:498