Bank Capital Redux: Solvency, Liquidity, and Crisis

• 成果类型: Article
• 署名作者: Jorda, Oscar; Richter, Bjorn; Schularick, Moritz; Taylor, Alan M.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco; University of California System; University of California Davis; Pompeu Fabra University; University of Bonn; University of California System; University of California Davis; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdaa040
• 发表日期: 2021
• 页码: 260-286
• 关键词: Financial crises; RISK; requirements; BEHAVIOR; cycles; IMPACT; POLICY; debt; firm

摘要

What is the relationship between bank capital, the risk of a financial crisis, and its severity? This article introduces the first comprehensive analysis of the long-run evolution of the capital structure of modern banking using newly constructed data for banks' balance sheets in 17 countries since 1870. In addition to establishing stylized facts on the changing funding mix of banks, we study the nexus between capital structure and financial instability. We find no association between higher capital and lower risk of banking crisis. However, economies with better capitalized banking systems recover faster from financial crises as credit begins to flow back more readily.