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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Real effects of bank capital regulations: Global evidence, Journal of Banking and Finance September (2017). Deli, Yota D. ; Hasan, Iftekhar

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Deli, Yota D. ; Hasan, Iftekhar 
Number of authors
Status Published
Year of publication 2017 
Date 01.08.2017 
Name of article Real effects of bank capital regulations: Global evidence 
Name of journal Journal of Banking and Finance
Volume of issue 82 
Number of issue September 
Pages 217-228 
Abstract We examine the effect of the full set of bank capital regulations (capital stringency) on loan growth, using bank-level data for a maximum of 125 countries over the period 1998–2011. Contrary to standard theoretical considerations, we find that overall capital stringency only has a weak negative effect on loan growth. In fact, this effect is completely offset if banks hold moderately high levels of capital. Interestingly, the components of capital stringency that have the strongest negative effect on loan growth are those related to the prevention of banks to use as capital borrowed funds and assets other than cash or government securities. In contrast, compliance with Basel guidelines in using Basel- and credit-risk weights has a much less potent effect on loan growth.
Free text descriptor in Finnish pankkitoiminta; pankit; pääoma; sääntely; pääomavaatimus; luotonanto; 
Free text descriptor in English Bank capital; Capital regulations; Loan growth 
JEL-codes G21; G28; E6; O4 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 9 December 2016.
Notes BoF DP 23/2017 

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