The Real Effects of Bank Capital Requirements

• 成果类型: Article
• 署名作者: Fraisse, Henri; Le, Mathias; Thesmar, David
• 署名单位: European Central Bank; Bank of France; European Central Bank; Bank of France; Massachusetts Institute of Technology (MIT); Center for Economic & Policy Research (CEPR)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2018.3222
• 发表日期: 2020
• 页码: 5-23
• 关键词: bank capital ratios; Bank regulation; Credit supply

摘要

We measure the impact of bank capital requirements on corporate borrowing, investment, and employment using loan-level data. The Basel II regulatory framework makes capital requirements vary across both banks and firms, which allows us to control for time-varying firm-level risk and bank-level credit supply shocks. We find that a 1 percentage point increase in capital requirements reduces lending by 2.3%-4.5%. Firms can attenuate this reduction by substituting borrowing across banks, but only to a limited extent. The resulting reduction in borrowing capacity affects significantly both investment and employment: for firmswhose effective capital requirements increase by 1 percentage point, fixed assets are reduced by 1.1%, capital expenditures by 2.7%, and employment by 0.8%.