DO MICROPRUDENTIAL REGULATIONS AND SUPERVISION AFFECT THE LINK BETWEEN LENDING AND CAPITAL RATIO IN ECONOMIC DOWNTURNS OF LARGE BANKS IN THE EU?

Do Microprudential Regulations and Supervision Affect the Link Between Lending and Capital Ratio in Economic Downturns of Large Banks in the EU?

This paper extends the literature on the capital crunch effect by examining the role of public policy for the link between lending and capital in a sample of large banks operating in the CELLOPHANES SAFFRON RED European Union during economic downturns.Applying Blundell and Bond (1998) two-step robust GMM estimator, we show that restrictions on bank

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