{"id":122150,"date":"2024-01-23T07:36:50","date_gmt":"2024-01-23T06:36:50","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/122150\/"},"modified":"2024-11-07T05:14:26","modified_gmt":"2024-11-07T04:14:26","slug":"the-empirics-of-balance-sheet-mechanics-capital-and-leverage-in-small-scale-banking","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/122150\/","title":{"rendered":"The Empirics of Balance Sheet Mechanics. Capital and Leverage in Small-scale Banking"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-122150","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The prevailing view in the banking industry is that increased bank capital requirements drag down bank lending. This is because capital is assumed to impose higher funding costs on banks than debts. The leading scholarly view in finance maintains the contrary. We are able to present microeconometric evidence in support of the theoretical proposition that the bank capital-bank lending linkage remains positive under a minimum capital requirement regime. Most importantly, the empirical analysis indicates that this finding may hold well in both short and long run.","onlinedate":"2015-04-16 12:00:00","lang":"English","publication_series":"","publication_date":"20150401","publication_date_year":"","publication_date_full":false,"publication_num_pages":"15","keywords":"[\"Bank capital\",\"Credit crunch\",\"Minimum capital requirement\"]","jelcodes":"[]","related_publications":"[]","pdf":357420,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"498","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2015-04-16 12:00:00","types":[44410],"research_groups":[3500],"collaboration":"","persons":[3925],"persons_data":"[{\"personId\":3925,\"personName\":\"Franz R. Hahn\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Hahn, F. R.<\\\/span> (2015). <span>The Empirics of Balance Sheet Mechanics. Capital and Leverage in Small-scale Banking<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (498). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/57911\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/57911<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Hahn FR<\\\/span>. <span class=\\\"title\\\"><span>The Empirics of Balance Sheet Mechanics. Capital and Leverage in Small-scale Banking<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2015 Apr;(498).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{6734c2b7145546bfa25a12ff849dafe5,<\\\/div><div>  title    = \\\"The Empirics of Balance Sheet Mechanics. Capital and Leverage in Small-scale Banking\\\",<\\\/div><div>  abstract = \\\"The prevailing view in the banking industry is that increased bank capital requirements drag down bank lending. This is because capital is assumed to impose higher funding costs on banks than debts. The leading scholarly view in finance maintains the contrary. We are able to present microeconometric evidence in support of the theoretical proposition that the bank capital-bank lending linkage remains positive under a minimum capital requirement regime. 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