Balance Sheet Strength and Bank Lending During the Global Financial Crisis

Book Name : Balance Sheet Strength and Bank Lending During the Global Financial Crisis

By by Tümer Kapan, Camelia Minoiu

Sub Title : NA

Written by : by Tümer Kapan, Camelia Minoiu

Subject Category : Business and Commerce

Read online, or download PDF file

about this book

We examine the role of bank balance sheet strength in the transmission of financial sector shocks to the real economy. Using data from the syndicated loan market, we exploit variation in banks' reliance on wholesale funding and their structural liquidity positions in 2007Q2 to estimate the impact of exposure to market freezes during 2007–08 on the supply of bank credit. We find that banks with strong balance sheets were better able to maintain lending during the crisis. In particular, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that strong bank balance sheets are key for the recovery of credit following crises, and provide support for regulatory proposals under the Basel III framework. International Monetary Fund; May 2013 ISBN 9781484387658 Read online, or download in secure PDF or secure EPUB format Title: Balance Sheet Strength and Bank Lending During the Global Financial Crisis Author: Tümer Kapan; Camelia Minoiu Imprint: INTERNATIONAL MONETARY FUND Subject categories Business and Commerce > Business Economics > Commerce Accounting > Financial statements Business > International Accounting > Inventory control Business > Economics > Macroeconomics Professions and Applied Sciences ISBNs 1484387651 9781484315842 9781484387658 9781484326749

About The authore

NA

Related subjects

Business and Commerce - Business Economics - Commerce Accounting - Financial statements Business - International Accounting - Inventory control Business - Economics - Macroeconomics Professions and Applied Sciences

ISBN

1484387651 - 9781484315842 - 9781484387658 - 9781484326749

In The Press:

NA

Imprint

INTERNATIONAL MONETARY FUND

Featured Books

MAIN CAMPUS

NIGERIA OFFICE

Kano Office

KAZAKHSTAN OFFICE

  • Almaty, 98 Baitursynuv Street, Office 3, Kazakhstan
  • +7 727 292 08 58 / +7 727 351 50 50
  • alik@axis-edu.kz

MOROCCO OFFICE

KYRGYZSTAN OFFICE