Dinger, V and te Kaat, DM (2020) Cross-border capital flows and bank risk-taking. Journal of Banking & Finance, 117. 105842. ISSN 0378-4266
Abstract
This paper explores the impact of cross-border capital flows on bank lending volumes and risk. Employing bank-level data from the euro area, we show that capital inflows are associated with higher bank credit supply and lower average loan quality. By showing that the lending patterns of smaller domestic banks are also affected, we present evidence that the impact of international capital flows is not limited to large banks with international exposure. Nevertheless, the observed effects are stronger for large banks as well as for banks with low levels of capitalisation, suggesting that agency issues reinforce the link between capital flows and bank lending.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2020 Elsevier B.V. All rights reserved. This is an author produced version of an article published in Journal of Banking & Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Bank lending; Bank risk-taking; International capital flows; Agency problems |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 May 2020 10:11 |
Last Modified: | 13 Nov 2021 01:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jbankfin.2020.105842 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:160188 |