How Does Bank Capital Influence Lending and Securities Holdings? Evidence From Asian Banks

7 Pages Posted: 30 Jun 2020

Date Written: June 6, 2020

Abstract

This study provides empirical evidence on the impact of bank capital on lending and securities holdings in Asian banks. Using a panel data set of 370 banks from 15 Asian countries over the period 2010-2018, our findings suggest that the increase in bank capital reduces lending supply, especially lending with a maturity between 1 and 5 years. Conversely, we highlight that the incentives to hold more securities (such as investment and trading securities) increase as banks' capital increases.

Keywords: Bank Capital, Bank Lending, Securities Holdings, Asian Banks

JEL Classification: G21, G28, E44

Suggested Citation

Boungou, Whelsy, How Does Bank Capital Influence Lending and Securities Holdings? Evidence From Asian Banks (June 6, 2020). Available at SSRN: https://ssrn.com/abstract=3620748 or http://dx.doi.org/10.2139/ssrn.3620748

Whelsy Boungou (Contact Author)

University of Bordeaux ( email )

Avenue Léaon Duiguit
Pessac, 33000
France
+33 6 19 20 34 16 (Phone)

HOME PAGE: http://https://sites.google.com/site/whelsyboungou/home

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