Is the Leverage of European Commercial Banks Pro-Cyclical?
AbstractDetecting whether banks?leverage is indeed procyclical is relevant to support the view that booms and crises may be reinforced by some sort of supply side ?nancial accelerator, whilst ?nding a plausible ex- planation of banks?behaviour is crucial to trace the road for a sensible reform of ?nancial regulation and managers? incentives. The paper shows that procyclical leverage appears to be well entrenched in the behaviour of a sample of major European banks, which are commonly labelled as mainly "commercial banks".
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Bibliographic InfoPaper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia e Finanza with number ief0093.
Date of creation: May 2010
Date of revision:
Banks; Pro-cyclicality; Financial Regulation.;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-29 (All new papers)
- NEP-BAN-2010-05-29 (Banking)
- NEP-CFN-2010-05-29 (Corporate Finance)
- NEP-EEC-2010-05-29 (European Economics)
- NEP-FMK-2010-05-29 (Financial Markets)
- NEP-REG-2010-05-29 (Regulation)
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- Sangjun Jeong & Hueechae Jung, 2013.
"Bank Wholesale Funding and Credit Procyclicality:Evidence from Korea,"
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