The Macroeconomic Impact of Bank Capital Requirements in Emerging Economies : Past Evidence to Assess the Future

Chiuri, Maria Concetta ; Ferri, Giovanni ; Majnoni, Giovanni

World Bank, Washington, DC

关键词: ACCOUNTING;    ACCOUNTING PROCEDURES;    ACCOUNTING STANDARDS;    ACCOUNTS;    ASSETS;   

DOI  :  10.1596/1813-9450-2605
RP-ID  :  WPS2605

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors test for emerging economies,the hypothesis - previously verified only for the Group of10 (G-10) countries - that enforcing bank capital assetrequirements, exerts a negative effect on the supply ofcredit. Their econometric analysis of data on individualbanks, suggests three main results: 1) Enforcement ofcapital asset requirements - according to the 1998 Baselstandard - significantly curtailed credit supply,particularly at less-well-capitalized banks. 2) Thisnegative effect is not limited to countries enforcingcapital asset requirements in the aftermath of a currency,or financial crises. 3) The adverse impact of capitalrequirements on the credit supply was somewhat smaller forforeign-owned banks, suggesting that opening up to foreigninvestors, may be an effective way to partly shield thedomestic banking sector from negative shocks. Overall, byinducing banks to reduce their lending, enforcement ofcapital asset requirements may well have induced anaggregate slowdown, or contraction in credit in the emergingeconomies examined. The results have relevance for theongoing debate on the impact of the revision of bank capitalasset requirements, contemplated by the 1999 Basel proposal.They suggest that in several emerging economies, the phasingin of higher capital requirements needs to be carefullymanaged, to avoid a credit supply retrenchment, which shouldnot be underestimated.