IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v65y2025i3p2487-2516.html
   My bibliography  Save this article

Negative interest rates, bank capital and lending behaviours

Author

Listed:
  • Zixuan Dai
  • Lei Xu

Abstract

We examine the impact of negative interest rate policies (NIRP) on the link between the capital adequacy ratio (CAR) and bank lending behaviours. Through a sample from 29 Organisation for Economic Cooperation and Development (OECD) countries, we find that NIRP improves the marginal effect of CAR on bank lending. Mortgage and corporate loans can both benefit from the building up of CAR after NIRP. Nevertheless, NIRP adversely affects CAR's marginal effect on the lending behaviours of global systemically important banks (G‐SIBs). Moreover, the influence of NIRP is heterogeneous depending on bank‐specific characteristics such as size and capital level.

Suggested Citation

  • Zixuan Dai & Lei Xu, 2025. "Negative interest rates, bank capital and lending behaviours," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(3), pages 2487-2516, September.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:3:p:2487-2516
    DOI: 10.1111/acfi.70004
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.70004
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.70004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:bla:acctfi:v:65:y:2025:i:3:p:2487-2516. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    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.