Akhtar, Yasmeen, Mujtaba, Ghulam ORCID: https://orcid.org/0000-0002-7317-4357 and Yousaf, Tahir (2019) The Effects of Regulatory Capital Requirements and Ownership Structure on Bank Lending in Emerging Asian Markets. Journal of Risk and Financial Management, 12 (3).

Preview

Text jrfm-12-00142.pdf - Published Version Available under License Creative Commons Attribution. Download (487kB) | Preview

Abstract

This study examines the impact of regulatory capital requirements and ownership structure on bank lending in Emerging Asian Markets. The findings of the study imply that banks with excess capital are less affected by capital constraints and enjoy opportunities to extend their credit portfolios. The monitory policy indicator has the expected negative and significant impact on bank lending. In case of well-capitalized banks, the interaction between the excess capital and monetary policy indicator has a significant positive relation with bank lending, which means that banks with excess capital have capability to raise uninsured financing and shield their loan portfolios as compared to less-capitalized banks that reduce their lending in the period of monetary tightening. In the case of bank ownership structure, banks with excess capital ratios and ownership concentration lead towards an increase in lending activity. The findings also show that well-capitalized banks with managerial ownership tend to reduce lending which validates agency theory of corporate governance.

Item Type:	Article
Status:	Published
DOI:	doi10.3390/jrfm12030142
School/Department:	London Campus
URI:	https://ray.yorksj.ac.uk/id/eprint/10047

University Staff: Request a correction | RaY Editors: Update this record