Bank Capital and Lending: An Analysis of Commercial Banks in the United States

Junghwan Mok
Authors registered in the RePEc Author Service: Sudipto Karmakar

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This paper empirically evaluates the impact of bank capital on lending patterns of commercial banks in the United States. We construct an unbalanced quarterly panel of around seven thousand medium sized commercial banks over sixty quarters, from 1996 to 2010. Using two different measures of capital namely the capital adequacy ratio and tier 1 ratio, we find a moderate relationship between bank equity and lending. We also use an innovative instrumenting methodology which helps us overcome the endogeneity issues that are common in such analyses. Our results are broadly consistent with some other recent studies that have analyzed US banking data.

JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ban
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https://www.bportugal.pt/sites/default/files/anexos/papers/wp201318.pdf

Related works:
Journal Article: Bank capital and lending: An analysis of commercial banks in the United States (2015)
Working Paper: Bank Capital and Lending: An Analysis of Commercial Banks in the United States (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w201318

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