Capital regulation and bank lending
Bank regulation in general and capital regulation in particular are widely perceived as having become stiffer in the 1990s. The stiffer regulatory environment in turn is argued to have curtailed bank lending. This article determines the extent to which capital standards changed in the 1990s and examines the relationship between capital positions and the bank lending. The empirical results suggest that capital standards did increase in the 1990s. The analysis also shows that bank loan growth rates are positively related to capital-to-assets ratios. Moreover, sensitivity of bank lending to capital positions appears to have increased in the 1990s. Regionally, capital regulation likely had the most pronounced. effect on bank lending in New England.
Volume (Year): (1992)
Issue (Month): ()
|Contact details of provider:|| Postal: |
Phone: (415) 974-2000
Fax: (415) 974-3333
Web page: http://www.frbsf.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Herbert Baer & John McElravey, 1992. "Capital adequacy and the growth of U.S. banks," Working Paper Series, Issues in Financial Regulation 92-11, Federal Reserve Bank of Chicago.
- Joe Peek & Eric Rosengren, 1991.
"The capital crunch: neither a borrower nor a lender be,"
91-4, Federal Reserve Bank of Boston.
- Peek, Joe & Rosengren, Eric, 1995. "The Capital Crunch: Neither a Borrower nor a Lender Be," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(3), pages 625-38, August.
- Joe Peek & Eric Rosengren, 1993. "The Capital Crunch: Neither A Borrower Nor A Lender Be," Boston College Working Papers in Economics 243, Boston College Department of Economics.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Fred Furlong, 1991. "Financial constraints and bank credit," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may24.
- Elizabeth S. Laderman & Ronald H. Schmidt & Gary C. Zimmerman, 1991. "Location, branching, and bank portfolio diversification: the case of agricultural lending," Economic Review, Federal Reserve Bank of San Francisco, issue Win, pages 24-38.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Ben S. Bernanke & Cara S. Lown, 1991. "The Credit Crunch," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 205-248.
When requesting a correction, please mention this item's handle: RePEc:fip:fedfer:y:1992:p:23-33:n:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger)
If references are entirely missing, you can add them using this form.