Loan interest rates under risk-based capital requirements: The impact of banking market structure

Drumond, Inês; Jorge, José

doi:10.1016/j.econmod.2013.02.017

Cited by 10 publications

(2 citation statements)

References 19 publications

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“…Other studies regarding this topic focus on the contributing factors. The analysis by Drumond and Jorge (2013) suggests that the overall impact of risk-based capital requirements on loan interest rates depends on the distribution of risk and leverage across firms and on the market structure of the banking sector. The empirical results by Said (2013) show that average rates of banks' loans are mainly influenced by market rates on loans and policy rates.…”

Section: Literature Reviewmentioning

confidence: 99%

The Basel Capital Requirement, Lending Interest Rate, and Aggregate Economic Growth: An Empirical Study of Viet Nam

Phi¹,

Hoang

Taghizadeh–Hesary

et al. 2019

SSRN Journal

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Section: Literature Reviewmentioning

confidence: 99%

The Basel Capital Requirement, Lending Interest Rate, and Aggregate Economic Growth: An Empirical Study of Viet Nam

Phi¹,

Hoang

Taghizadeh–Hesary

et al. 2019

SSRN Journal

View full text Add to dashboard Cite

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“…(2012) in their study they investigated into lending behavior and the level of lending in Nigerian commercial banks, they found that there is a direct relationship between deposit volume and loans and advances volume, from the other side factors such as naira rate of foreign exchange, GDP and reserve requirement by central bank do reflect a negative relationship with lending behavior. Drumond and Jorge (2013) theoretically tested the effect of banking sector structure on lending behavior in the context of a new regulatory environment. They indicated that shifting from risk free capital requirements to risky ones the rate of interest on lending.…”

Section: Introductionmentioning

confidence: 99%

Cyclicality of Lending Behavior by Banking Sector for the Period (2000-2013): Evidence from Jordan

Al-Kilani

Kaddumi

2015

IJEF

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All economic sectors and individuals in Jordan rely mainly on banks to cover their shortage in money, thus banking sector plays a vital role in enhancing investments and economic development by standing in the middle between deficit units and surplus units. The major goal of this study is to identify what are the main drivers that impact lending behavior in Jordan. Using panel data and applying multi regression analysis on (13) Jordanian Conventional banks and two Islamic banks for the period (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013) that are covered in this research, we found that lending behavior is statistically significantly affected by internal factors (DV, IR and net profit after tax) and it is also affected significantly by external factor (RR, GDP, IFR, OWDR and Red. R). Also the analysis indicated that OWDR and Red. R as a proxy for monetary policy did have a negative impact on lending behavior but not significantly proven. The study also reached to a conclusion that the amount of loans and advances extended by Jordanian banks is not affected by rate of interest. We recommend that Jordanian banks' management should take into consideration internal specific factors as well as external specific factor with more care while formulating their lending policy, moreover central bank in cooperation with the Jordanian banking sector should work in more productive relationship in order to enhance more the economic growth.

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Bank stability and economic growth: trade-offs or opportunities?

2020

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Loan interest rates under risk-based capital requirements: The impact of banking market structure

Cited by 10 publications

References 19 publications

The Basel Capital Requirement, Lending Interest Rate, and Aggregate Economic Growth: An Empirical Study of Viet Nam

The Basel Capital Requirement, Lending Interest Rate, and Aggregate Economic Growth: An Empirical Study of Viet Nam

Cyclicality of Lending Behavior by Banking Sector for the Period (2000-2013): Evidence from Jordan

Bank stability and economic growth: trade-offs or opportunities?

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