Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279547 
Year of Publication: 
2023
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 26/2023
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
What is the impact of a sudden and sizeable increase in bank capital requirements on the lending activity by directly affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference-in-differences methodology around the capital exercise by the European Banking Authority (EBA) in 2011 with German credit register data. We find that insurance companies, financial enterprises, and factoring companies - but not leasing companies - and Non-EBA banks expand their corporate lending relative to EBA banks. In particular, NBFIs use the opportunity to expand their credit activities, in riskier and more competitive borrower segments, but NBFIs do not seem to rely on increased bank funding to finance this expansion.
Subjects: 
non-bank financial intermediation
bank capital requirements
EBA capital exercise
JEL: 
E50
G21
G23
G28
C33
ISBN: 
978-3-95729-957-4
Document Type: 
Working Paper

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