Institutional Development, Capital Ratios, and Bank Lending: Evidence from a Global Context

2019 ◽  
Author(s):  
Christina Nicolas
Keyword(s):  
Institutional Development ◽  
Bank Lending ◽  
Global Context ◽  
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

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

Prime Proportion Affects Masked Priming of Fixed and Free-Choice Responses

2010 ◽  
Vol 57 (5) ◽  
pp. 360-366 ◽  
Author(s):  
Glen E. Bodner ◽  
Rehman Mulji
Keyword(s):  
Decision Process ◽  
Free Choice ◽  
Masked Priming ◽  
Local Context ◽  
Previous Trial ◽  
Target Response ◽  
Global Context ◽  
Sequential Trial

Left/right “fixed” responses to arrow targets are influenced by whether a masked arrow prime is congruent or incongruent with the required target response. Left/right “free-choice” responses on trials with ambiguous targets that are mixed among fixed trials are also influenced by masked arrow primes. We show that the magnitude of masked priming of both fixed and free-choice responses is greater when the proportion of fixed trials with congruent primes is .8 rather than .2. Unconscious manipulation of context can thus influence both fixed and free choices. Sequential trial analyses revealed that these effects of the overall prime context on fixed and free-choice priming can be modulated by the local context (i.e., the nature of the previous trial). Our results support accounts of masked priming that posit a memory-recruitment, activation, or decision process that is sensitive to aspects of both the local and global context.

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