Hidden Bibliographic Details
| Other authors / contributors: | Barajas, Adolfo.
International Monetary Fund. African Department.
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| ISBN: | 9781498393324
1498393322
1498372236
9781498372237
1498348181
9781498348188
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| Notes: | "Prepared by Adolfo Barajas, Thomas Cosimano, Dalia Hakura, and Sebastian Roelands."
"March 2015."
"AFR."
Includes bibliographical references (pages 24-26).
Online resource; title from pdf title page (IMF.org Web site, viewed March 20, 2015).
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| Summary: | Paper examines the role of bank capital in decision-making by bank holding companies (BHCs) in the United States. Following Chami and Cosimano's (2001) call option approach to bank capital, BHCs optimally choose the amount of capital to insure the bank against becoming capital constrained in the future. We provide empirical support for this model, and find that a higher optimal level of capital leads to higher loan rates. Furthermore, higher loan rates result in lower amounts of lending. Thus, an increase in capital requirements is likely to lead to higher loan rates and a significant reduction in lending. --Abstract.
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| Other form: | Print version: Barajas, Adolfo. Role of Bank Capital in Bank Holding Companies' Decisions. Washington : International Monetary Fund, ©2015
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| Standard no.: | 10.5089/9781498372237.001
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