scholarly journals Capital Ratios and Bank Lending: A Matched Bank Approach

2011 ◽  
Author(s):  
Mark A. Carlson ◽  
Hui Shan ◽  
Missaka Warusawitharana
Keyword(s):  
Bank Lending ◽  
Capital Ratios

scholarly journals Capital ratios and bank lending: A matched bank approach

2013 ◽  
Vol 22 (4) ◽  
pp. 663-687 ◽  
Author(s):  
Mark Carlson ◽  
Hui Shan ◽  
Missaka Warusawitharana
Keyword(s):  
Bank Lending ◽  
Capital Ratios

scholarly journals Basel capital requirements, portfolio shift and bank lending in Africa

2021 ◽  
Vol 10 (1) ◽  
pp. 296-319
Author(s):  
Damilola Oyetade ◽  
Adefemi A. Obalade ◽  
Paul-Francois Muzindutsi
Keyword(s):  
South African ◽  
Commercial Banks ◽  
Bank Lending ◽  
Capital Requirements ◽  
Descriptive Statistics ◽  
Basel Iii ◽  
Loan Portfolio ◽  
Capital Ratios ◽  
Commercial Loans ◽  
Insight Into

Bank lending is a major source of income for a bank. Compliance with higher Basel capital requirements (CAR) portends serious implication for distribution of loan portfolio across different sectors. The objective of the study is to examine African banks’ responses to higher CAR in terms of portfolio shift. The study used descriptive statistics and ANOVA for panel data of African commercial banks that have implemented Basel II or III CAR for the period 2000 and 2018. Based on the results of our analysis, implementation of higher Basel CAR by African banks revealed four key findings. Firstly, our results suggest that higher Basel CAR particularly Basel III reduced total loans for South African banks. Secondly, African banks engage in portfolio shift with higher Basel levels. Thirdly, higher Basel capital increased banks' capital ratios in Africa, but some banks are still characterized by low equity. Fourthly, African banks reduce lending to high risk-weighted loans such as real estate and commercial loans except for South African banks which increased lending to commercial loans with higher Basel CAR. Lastly, this study proffers key insight into the lending behaviour of African banks with the implementation of higher Basel CAR.

scholarly journals The Effects of Regulatory Capital Requirements and Ownership Structure on Bank Lending in Emerging Asian Markets

2019 ◽  
Vol 12 (3) ◽  
pp. 142 ◽  
Author(s):  
Yasmeen Akhtar ◽  
Ghulam Mujtaba Kayani ◽  
Tahir Yousaf
Keyword(s):  
Ownership Structure ◽  
Bank Lending ◽  
Capital Requirements ◽  
Managerial Ownership ◽  
Regulatory Capital ◽  
Loan Portfolios ◽  
Bank Ownership ◽  
Capital Ratios ◽  
Lending Activity ◽  
The Impact

This study examines the impact of regulatory capital requirements and ownership structure on bank lending in Emerging Asian Markets. The findings of the study imply that banks with excess capital are less affected by capital constraints and enjoy opportunities to extend their credit portfolios. The monitory policy indicator has the expected negative and significant impact on bank lending. In case of well-capitalized banks, the interaction between the excess capital and monetary policy indicator has a significant positive relation with bank lending, which means that banks with excess capital have capability to raise uninsured financing and shield their loan portfolios as compared to less-capitalized banks that reduce their lending in the period of monetary tightening. In the case of bank ownership structure, banks with excess capital ratios and ownership concentration lead towards an increase in lending activity. The findings also show that well-capitalized banks with managerial ownership tend to reduce lending which validates agency theory of corporate governance.

scholarly journals Basel Accord and Banking Competitivity

2016 ◽  
Vol 5 (12) ◽  
pp. 252-258
Author(s):  
Lassaad Jebali ◽  
Siwar Hmedi
Keyword(s):  
Risk Management ◽  
Side Effects ◽  
Risk Taking ◽  
Bank Lending ◽  
Capital Requirements ◽  
Credit Crunch ◽  
Basel Accord ◽  
Minimum Capital ◽  
Minimum Requirements ◽  
Capital Ratios

The first Basel Accord 1988 focused on the adoption of fixed minimum capital requirements, which led some banks to maintain higher capital ratios than they deserve some other banks succeeded in limiting risk-taking relative to capital as intended. Banks which didn’t succeed the risk management have been able to take actions to reduce their effectiveness, either by shifting to riskier assets within the same weighting band or through capital arbitrage. It looks at two possible side effects. Firstly, whether in some periods capital requirements may have had the effect of constraining bank lending thereby causing a credit crunch. Secondly, the introduction of fixed minimum requirements for banks affected competitiveness with relative forms of intermediation.

scholarly journals Monetary Policy Spillovers Under Covid-19: Evidence from U.S. Foreign Bank Subsidiaries

2021 ◽  
pp. 1.000-30.000
Author(s):  
Mark M. Spiegel ◽  
Keyword(s):  
Monetary Policy ◽  
Home Country ◽  
Bank Lending ◽  
The United States ◽  
Foreign Bank ◽  
Percentage Point Increase ◽  
Capital Ratios ◽  
Bank Balance Sheets ◽  
The Impact ◽  
Monetary Policy Spillovers

This paper uses Call Report data to examine the impact of home country monetary policy on foreign bank subsidiary lending in the United States during the COVID-19 pandemic. Examining a large sample of foreign bank subsidiaries and domestic U.S. banks, we find that foreign bank lending growth was positively associated with both lower home country policy rates and negative home country rates. Our point estimates indicate that a one standard deviation decrease in home country policy rates was associated with a 3.5 percentage point increase in lending growth while negative home country policy rates added an additional 3.0 percentage points on average. Disparities in sensitivity to home country rates also exist by bank size, as large banks exhibited more responsiveness to home country policy rate levels, but were less responsive to negative policy rates. Easier home country policy rates are also found to impact negatively in growth in capital ratios and bank income, in keeping with expanded foreign subsidiary activity. However, income responses to negative home country rates are mixed, in a manner suggestive of sophisticated adjustment of global bank balance sheets to changes in relative home and host country monetary policy stances. Overall, our findings confirm that the bank lending channel for global monetary policy spillovers was active during the pandemic crisis.

scholarly journals Capital Ratios and Bank Lending : A Matched Bank Approach

2011 ◽  
Vol 2011 (34) ◽  
pp. 1-32 ◽  
Author(s):  
Mark A. Carlson ◽  
◽  
Hui Shan ◽  
Missaka Warusawitharana
Keyword(s):  
Bank Lending ◽  
Capital Ratios

Agrarian receipts as a tool for the structural transformation of financial and credit relations in the agrarian business of the region

2019 ◽  
pp. 40-53
Author(s):  
Yuliia Nehoda
Keyword(s):  
Comparative Analysis ◽  
Retrospective Analysis ◽  
Structural Transformation ◽  
Pilot Project ◽  
Bank Lending ◽  
Economic Benefits ◽  
Advantages And Disadvantages ◽  
New Instrument ◽  
Agricultural Business ◽  
Business Entities

The subject of the research – is a set of organizational-economic relations arising in the process of structural transformation of financial and credit relations in the agricultural business. The purpose of the article is a retrospective analysis of structural transformations of financial and credit relations in the agricultural business, evaluation of the effectiveness and feasibility of the introduction of agricultural receipts as a new instrument of lending to the agricultural business of the regions. Methodology of work – system-structural and comparative analyzes (to determine the effectiveness of the crediting mechanism according to the agricultural receipts of the farmers of the region); monographic (when studying the problems of the functioning of the mechanism of lending to agrarians by agrarian receipts) economic analysis (when carrying out a comparative analysis of the mechanism of classical bank lending to the agrarian business and the mechanism of lending to agrarians according to agrarian receipts); modeling and forecasting (when determining ways to overcome the existing deficiencies in the mechanism of lending to agrarian business entities of the region according to agrarian receipts). The results of the work – a retrospective analysis of the structural transformation of financial and credit relations in the agricultural business was carried out. The mechanism of crediting agrarians according to agrarian receipts and the scale of its distribution in the agrarian business of the region are considered. A comparative analysis of the mechanism of classical bank lending to the agrarian business and the mechanism of lending to agrarians according to agrarian receipts was carried out. In the framework of the pilot project “Agrarian receipts in Ukraine” of the international financial corporation (IFC) in partnership with the Swiss Confederation in Ukraine, the example of the Poltava region defined the effectiveness of the crediting mechanism according to the agrarian receipts of the agrarians of the region. The advantages and disadvantages of the mechanism of crediting the subjects of the agrarian business on agrarian receipts are noted. The ways to overcome the existing shortcomings of the mechanism of crediting the subjects of the agrarian business of the region according to agricultural receipts are determined. Conclusions – according to the results of the conducted research, the effectiveness of the mechanism of lending to the agricultural business of the regions according to agricultural receipts was proved, its advantages and disadvantages were noted, and attention was also focused. Proposed in Art. 7 of Law No. 5479-VI clearly delineate cases and restrictions on the debtor’s reimbursement of expenses incurred by the lender with the acquisition of the right to grow and harvest the pledged crop of agricultural products, which will ensure the principle of equality of parties on economic benefits and distribution of credit risks according to agricultural receipts.

World Bank Lending for Small Enterprises, 1989-1993

1996 ◽  
Author(s):  
Leila M. Webster ◽  
Randall Riopelle ◽  
Anne-Marie Chidzero
Keyword(s):  
World Bank ◽  
Bank Lending ◽  
Small Enterprises
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