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The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland

Author

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  • Pawel Bojar

    (Faculty of Management, University of Warsaw)

  • Malgorzata Anna Olszak

    (Faculty of Management, University of Warsaw)

Abstract

This paper aims to determine the role of the expected credit loss approach as defi ned in IFRS 9 in the eff ects of capital ratio on loans growth in publicly traded banks in Poland. To resolve this problem, we apply semi-annual data of individual banks in 2012–2018. Using several estimation techniques, we fi nd that in the period of implementation of the expected credit loss approach, the links between loans growth and the capital ratio were enhanced. In particular, lending growth is more sensitive to levels of the capital ratio. These results are important with respect to the goal of bank fi nancial stability and have implications for the conduct of macroprudential policy.

Suggested Citation

  • Pawel Bojar & Malgorzata Anna Olszak, 2022. "The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(17), pages 60-73, August.
    • Handle: RePEc:sgm:jbfeuw:v:1:y:2022:i:17:p:60-73
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    File URL: https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=231329
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    More about this item

    Keywords

    loans growth rate; capital ratio; expected credit loss; IRFS 9;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • G2 - Financial Economics - - Financial Institutions and Services
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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