IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-770-0_49.html

Capital Replenishment and Credit Supply: Empirical Evidence from Banks’ Issuance of Perpetual Bonds

In: Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)

Author

Listed:
  • Hao Gao

    (Jinan University, School of Economics)

Abstract

Commercial banks are crucial in serving the real economy, with bank capital as the foundation. However, strict regulations and the need to bring off- balance-sheet activities back on-balance-sheet pose challenges. This makes it hard for banks to achieve “regulatory stability” and “steady growth” simultaneously, impeding monetary policy transmission. In 2019, the central bank supported banks in issuing perpetual bonds to replenish other Tier 1 capital and created the CBS tool. Using data from 2015–2022 on banks’ perpetual bond issuance and bank and enterprise financial reports, and applying the multi-period difference-in-differences method, this paper finds that banks’ issuance of perpetual bonds significantly boosts bank credit growth and corporate lending. The effects are more evident for weaker banks and stronger enterprises.

Suggested Citation

  • Hao Gao, 2025. "Capital Replenishment and Credit Supply: Empirical Evidence from Banks’ Issuance of Perpetual Bonds," Advances in Economics, Business and Management Research, in: Wenke Zang & Chunping Xia (ed.), Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025), pages 429-435, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-770-0_49
    DOI: 10.2991/978-94-6463-770-0_49
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:spr:advbcp:978-94-6463-770-0_49. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.