Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/195259 
Year of Publication: 
2017
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Volume:] 8 [Issue:] 3 [Publisher:] Springer [Place:] Heidelberg [Year:] 2017 [Pages:] 287-309
Publisher: 
Springer, Heidelberg
Abstract: 
This paper analyzes the financing choices of banks under capital regulation during the expansion period that preceded the crisis. We use data from Dealogic on the issuances of financial instruments of Spanish banks to test whether financing choices respond to predictions derived from the corporate finance theory and/or to capital regulation. We find that banks financed their exponential growth with debt instruments and covered the additional regulatory capital requirements from higher risk-weighted assets with the issuance of hybrid instruments. We also find that banks choose the financial instruments that minimize asymmetric information costs.
Subjects: 
Banks
Capital regulation
Financing choices
Informational asymmetries
Financial markets
JEL: 
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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