Article ID Journal Published Year Pages File Type
7360206 Journal of Economics and Business 2018 46 Pages PDF
Abstract
Using data on commercial banks in Europe, this paper analyses the impact of the new Basel III capital and liquidity regulation on bank lending following the 2008 financial crisis. On the whole, capital ratios have significant and negative impacts on large European bank-retail-and-other-lending-growth in a context of deleveraging and “credit crunch” in Europe over the post-2008 financial crisis period. Additionally, liquidity indicators have positive but perverse effects on bank-lending-growth, which supports the need to consider heterogeneous banks' characteristics and behaviours when implementing new regulatory policies.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
Authors
,