Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Macroprudential Policy, Countercyclical Bank Capital Buffers and Credit Supply: Evidence from the Spanish Dynamic Provisioning Experiments
Organization Unit
Authors
  • Steven Ongena
  • José Luis Peydró
  • Jesús Saurina
  • Gabriel Jimenez
Item Subtype Original Work
Refereed Yes
Status Published electronically before print/final form (Epub ahead of print)
Language
  • English
Journal Title Journal of Political Economy
Geographical Reach international
Volume forthcoming
Page Range -
Date 2017
Abstract Text We analyze the impact of the countercyclical capital buffers held by banks on the supply of credit to firms and their subsequent performance. Countercyclical ‘dynamic’ provisioning unrelated to specific loan losses was introduced in Spain in 2000, and modified in 2005 and 2008. The resultant bank-specific shocks to capital buffers, combined with the financial crisis that shocked banks according to their available pre-crisis buffers, underpin our identification strategy. Our estimates from comprehensive bank-, firm-, loan-, and loan application-level data suggest that countercyclical capital buffers help smooth credit supply cycles and in bad times uphold firm credit availability and performance.
Related URLs
Export BibTeX
EP3 XML (ZORA)