Two-way interplays between capital buffers and credit growth: Evidence from French banks
Adrian Pop
- Fonction : Auteur
- PersonId : 1280009
- IdHAL : adrian-pop
- ORCID : 0000-0002-8220-3674
- IdRef : 109090861
Résumé
We assess the extent to which bank capital buffers exacerbate the cyclical behavior of credit. We empirically study the relationships between GDP growth, capital buffers and loan growth with firm-level data for French banks over the period 1993–2009. Based on panel data simultaneous equations and Granger causality tests, our findings point to mutually reinforcing mechanisms between capital buffers and loan growth, all the more as better quality capital is considered. Overall, those empirical results lend support to a countercyclical financial regulation focused on high-quality capital and loan growth smoothing.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Two-way interplays between capital buffers and credit growth: Evidence from French banks
|
Résumé |
en
We assess the extent to which bank capital buffers exacerbate the cyclical behavior of credit. We empirically study the relationships between GDP growth, capital buffers and loan growth with firm-level data for French banks over the period 1993–2009. Based on panel data simultaneous equations and Granger causality tests, our findings point to mutually reinforcing mechanisms between capital buffers and loan growth, all the more as better quality capital is considered. Overall, those empirical results lend support to a countercyclical financial regulation focused on high-quality capital and loan growth smoothing.
|
Auteur(s) |
Jérôme Coffinet
1
, Virginie Coudert
2
, Adrian Pop
3
, Cyril Pouvelle
1, 4, 5
1
Banque de France
( 135991 )
- French Prudential Supervisory Authority, Banking Studies Division, 1 Rue de la Vrillière, 75001 Paris,
- France
2
EconomiX -
EconomiX
( 2564 )
- Bâtiment G
200 Avenue de la République
92001 NANTERRE CEDEX
- France
3
LEMNA -
Laboratoire d'économie et de management de Nantes Atlantique
( 95496 )
- Chemin de la Censive du Tertre - Bâtiment Erdre - BP 52231 - 44322 NANTES Cedex 3 - FRANCE
- France
4
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
|
Audience |
Internationale
|
Date de publication |
2012-12
|
Numéro |
5
|
Page/Identifiant |
1110-1125
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Volume |
22
|
Domaine(s) |
|
Mots-clés |
en
Bank capital regulation, Pro-cyclicality, Capital buffers, Business cycle, Basel III
|
DOI | 10.1016/j.intfin.2012.05.011 |
Loading...