Brinkmeyer Drivers of Bank Lending

New Evidence from the Crisis
1. Auflage 2014
ISBN: 978-3-658-07175-2
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 247 Seiten

Reihe: Schriften zum europäischen Management

?After the recent financial crisis has hooked the banking system to its very foundations, Hartmut Brinkmeyer contributes to the question of how bank characteristics influence bank loan supply during crisis periods by developing a well-founded theoretical framework. The econometrical design deploys a number of remarkably innovative ideas such as the implementation of a bank-specific, self-chosen target capital ratio or a very convincing approach to the disentanglement of loan supply and demand. The results of this study deliver a profound insight into the lending behavior of European banks and explicitly urge academic and practical discussion.

Hartmut Brinkmeyer completed his doctoral thesis under the supervision of Prof. Dr. Christoph J. Börner and Prof. Dr. Ulrike Neyer at the Heinrich Heine University Düsseldorf. He studied Economics and Philosophy in Bayreuth, Rouen and Maastricht and works as a top management consultant.

Autoren/Hrsg.

Brinkmeyer, Hartmut

Inhaltsverzeichnis

1;FOREWORD;6
2;ACKNOWLEDGEMENTS;8
3;TABLE OF CONTENTS;9
4;LIST OF FIGURES;13
5;LIST OF TABLES;15
6;LIST OF NOTATIONS AND ABBREVIATIONS;17
7;1. Introduction;18
7.1;1.1. Motivation;18
7.2;1.2. Research questions and contribution;19
7.3;1.3. Scope and limitations;21
7.4;1.4. Organization of the research;22
8;2. Transmission channels of monetary policy;24
8.1;2.1. The money view;24
8.2;2.2. The credit view;27
8.2.1;2.2.1. The balance sheet channel;28
8.2.2;2.2.2. The bank lending channel – Overview;30
9;3. The bank lending channel in detail;35
9.1;3.1. Structure and elements of the bank lending channel;35
9.1.1;3.1.1. Condition 1: The central bank must be able to affect the supply scheme of bank loans;39
9.1.2;3.1.2. Condition 2: Publicly issued debt and non-bank intermediated loans must not be perfect substitutes for bank loans;45
9.1.3;3.1.3. Condition 3: Prices must not adjust instantaneously;49
9.2;3.2. Conclusion;51
10;4. A new view: Implications of financial innovation for bank lending;52
10.1;4.1. The bank lending channel revisited;52
10.2;4.2. Toward a conceptualization of the new view;57
11;5. Bank lending against the background of the recent crises;61
11.1;5.1. The loss spiral;62
11.2;5.2. The margin spiral or leverage cycle;67
11.3;5.3. Conclusion;69
12;6. Review of empirical evidence on bank lending and its implications;72
12.1;6.1. Remarks on the difference between the US and the euro area;73
12.2;6.2. Empirical evidence from the US;75
12.2.1;6.2.1. US evidence based on aggregate data;75
12.2.2;6.2.2. US evidence based on data from individual banks;76
12.2.3;6.2.3. Conclusion;84
12.3;6.3. Evidence from the euro area;85
12.3.1;6.3.1. Euro area evidence from before the crisis;86
12.3.2;6.3.2. Euro area evidence in the wake of the crisis;90
12.3.3;6.3.3. Conclusion;93
12.4;6.4. Implications of theoretical framework for interpretation of empirical evidence;94
13;7. Empirical analysis – approach;99
13.1;7.1. Research hypotheses;99
13.1.1;7.1.1. General hypotheses;100
13.1.2;7.1.2. Hypotheses involving the context of the recent crisis;102
13.2;7.2. Overall empirical strategy and approach;106
13.3;7.3. Empirical model;108
13.3.1;7.3.1. Derivation of a model of bank behavior;108
13.3.2;7.3.2. Introduction of the empirical model;113
13.4;7.4. Data;115
13.4.1;7.4.1. Data sources;115
13.4.2;7.4.2. Target capital estimation;127
13.4.3;7.4.3. Special challenges;130
13.4.4;7.4.4. Purging the data;136
13.5;7.5. Estimation method;138
14;8. Empirical analysis – results;146
14.1;8.1. Results for the euro area;146
14.1.1;8.1.1. Descriptive statistics and correlations;148
14.1.2;8.1.2. Baseline analysis;151
14.1.3;8.1.3. Capital surplus;170
14.1.4;8.1.4. Deposit overhang;178
14.2;8.2. Results for major euro area countries;187
14.2.1;8.2.1. Composition of the country samples and tested specifications;188
14.2.2;8.2.2. Main results for Germany;191
14.2.3;8.2.3. Main results for Italy;195
14.2.4;8.2.4. Main results for France;198
14.2.5;8.2.5. Main results for Spain;201
14.2.6;8.2.6. Discussion of inter-country differences and differences between countries and the euro area;204
14.3;8.3. Conclusion – Main research hypotheses confirmed;208
15;9. Final discussion and implications;211
15.1;9.1. Overall summary of results;211
15.2;9.2. Theoretical contributions;214
15.2.1;9.2.1. Contributions to research regarding the determinants of bank lending;214
15.2.2;9.2.2. Contributions to bank lending channel-related research;216
15.3;9.3. Implications for bank management;219
15.4;9.4. Implications for monetary policymakers;222
15.5;9.5. Implications for the discussion of banking supervision;223
15.6;9.6. Limitations and outlook;224
16;References;228
17;Appendix;239