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Banking Trends: How and Why Bank Capital Ratios Change Over the Business Cycle

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  • PJ Elliott

Abstract

Small-bank and large-bank capital ratios behave quite differently. To under-stand the difference, look at the data.

Suggested Citation

  • PJ Elliott, 2021. "Banking Trends: How and Why Bank Capital Ratios Change Over the Business Cycle," Banking Trends, Federal Reserve Bank of Philadelphia, March.
    • Handle: RePEc:fip:fedpbt:90266
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    References listed on IDEAS

    as
    1. Joseph G. Haubrich, 2020. "How Cyclical Is Bank Capital?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 58(1), pages 27-38, August.
    2. Jokipii, Terhi & Milne, Alistair, 2008. "The cyclical behaviour of European bank capital buffers," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1440-1451, August.
    3. Randal K. Quarles, 2018. "Getting It Right: Factors for Tailoring Supervision and Regulation of Large Financial Institutions: a speech at American Bankers Association Summer Leadership Meeting, Salt Lake City, Utah," Speech 1008, Board of Governors of the Federal Reserve System (U.S.).
    4. Jeremy C. Stein & Anil K. Kashyap, 2000. "What Do a Million Observations on Banks Say about the Transmission of Monetary Policy?," American Economic Review, American Economic Association, vol. 90(3), pages 407-428, June.
    5. Ayuso, Juan & Perez, Daniel & Saurina, Jesus, 2004. "Are capital buffers pro-cyclical?: Evidence from Spanish panel data," Journal of Financial Intermediation, Elsevier, vol. 13(2), pages 249-264, April.
    6. Lael Brainard, 2018. "Assessing Financial Stability over the Cycle: a speech at the Peterson Institute for International Economics, Washington, D.C," Speech 1029, Board of Governors of the Federal Reserve System (U.S.).
    7. Shim, Jeungbo, 2013. "Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 761-772.
    Full references (including those not matched with items on IDEAS)

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