IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-15581-0_3.html
   My bibliography  Save this book chapter

Determinants of Loans Growth in Cooperative Banks in Poland: Does Capital Ratio Matter?

In: Contemporary Trends and Challenges in Finance

Author

Listed:
  • Małgorzata Olszak

    (University of Warsaw)

  • Iwona Kowalska

    (University of Warsaw)

  • Filip Świtała

    (University of Warsaw)

Abstract

This paper examines the impact of bank capital ratios on cooperative banks’ lending by comparing differences in loan growth to differences in capital ratios at sets of banks that are clustered based on capital ratio size. Applying fixed-effects estimator to sample of cooperative banks operating in Poland and using a unique quarterly dataset covering the period of 1999:4–2012:4 we find that loans growth is particularly capital constrained in poorly-capitalized banks, but only in non-recessionary. Lending of poorly capitalized banks is strongly affected by interest rate margin. Interest rate margin is also important in determining loans growth of medium and large cooperative banks. Generally, our results give support for the view that small banks, such as cooperative banks are not capital constrained in recessionary periods, thus their customers do not suffer from capital crunch in unfavourable macroeconomic conditions. However, their lending activity is procyclical, because increases in unemployment rate result in decreases in loans growth of cooperative banks in Poland.

Suggested Citation

  • Małgorzata Olszak & Iwona Kowalska & Filip Świtała, 2019. "Determinants of Loans Growth in Cooperative Banks in Poland: Does Capital Ratio Matter?," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orłowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 25-37, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-15581-0_3
    DOI: 10.1007/978-3-030-15581-0_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-030-15581-0_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.