Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/144443 
Title: 

Macroprudential policy, countercyclical bank capital buffers and credit supply: Evidence from the Spanish dynamic provisioning experiments

The document was removed on behalf of the author(s)/ the editor(s).

Year of Publication: 
2012
Series/Report no.: 
NBB Working Paper No. 231
Publisher: 
National Bank of Belgium, Brussels
Abstract: 
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.
Subjects: 
bank capital
dynamic provisioning
credit availability
financial crisis
JEL: 
E51
E58
E60
G21
G28
Document Type: 
Working Paper

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The document was removed on behalf of the author(s)/ the editor(s) on: May 6, 2020


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