“…20 The large strand of the literature that has investigated potential effects of higher capital requirements on loan supply include e.g. Hancock and Wilcox, 1998;Conti et al, 2018;De Jonghe et al, 2019;Deli and Hasan, 2017;Eickmeier et al, 2018;Fraisse et al, 2017;Glancy and Kurtzman, 2018;Imbierowicz et al, 2018;Kanngiesser et al, 2019;Meeks, 2017;Uluc and Wieladek, 2018;Tolo and Miettinen, 2018. At least a short-term negative effect on loan supply of higher capital requirements may be due to their positive effect on bank funding costs (Schmidt, 2019).…”