Liquidity and capital in bank lending: Evidence from European banks
Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid
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Yn: Finance Research Letters, Cyfrol 34, 101273, 05.2020.
Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid
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TY - JOUR
T1 - Liquidity and capital in bank lending: Evidence from European banks
AU - Thornton, John
AU - Di Tommaso, Caterina
PY - 2020/5
Y1 - 2020/5
N2 - We examine whether the effect of bank capital on credit growth differs depending upon the level of liquidity in a panel of up to 521 banks from 21 European countries. We find that the effect of an increase in bank capital is positively associated with the level of bank liquidity, suggesting that capital exerts a significantly positive effect on European banks’ credit growth after they retain sufficient liquid funds.
AB - We examine whether the effect of bank capital on credit growth differs depending upon the level of liquidity in a panel of up to 521 banks from 21 European countries. We find that the effect of an increase in bank capital is positively associated with the level of bank liquidity, suggesting that capital exerts a significantly positive effect on European banks’ credit growth after they retain sufficient liquid funds.
U2 - 10.1016/j.frl.2019.08.021
DO - 10.1016/j.frl.2019.08.021
M3 - Article
VL - 34
JO - Finance Research Letters
JF - Finance Research Letters
SN - 1544-6123
M1 - 101273
ER -