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Size‐conditioned mandatory capital adequacy disclosure and bank intermediation

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  • Natalya Zelenyuk
  • Robert Faff
  • Shams Pathan

Abstract

We add to the literature on the real effects of macroprudential regulation by investigating the novel link between a mandatory capital adequacy disclosure and bank intermediation. The mandatory disclosure stems from the Federal Reserve regulation change of 2013 and leads to identification of bank intermediation effects with treatment methods. A combined empirical strategy of difference‐in‐differences and regression discontinuity design point to economically significant evidence for the reduction of both lending and on‐balance sheet liquidity creation, for banks that disclose their capital adequacy as prescribed by the regulation.

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  • Natalya Zelenyuk & Robert Faff & Shams Pathan, 2020. "Size‐conditioned mandatory capital adequacy disclosure and bank intermediation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 4387-4417, December.
  • Handle: RePEc:bla:acctfi:v:60:y:2020:i:4:p:4387-4417
    DOI: 10.1111/acfi.12536
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    Cited by:

    1. Natalya Zelenyuk & Robert Faff, 2022. "Effects of incentive pay on systemic risk: evidence from CEO compensation and CoVar," Empirical Economics, Springer, vol. 63(6), pages 3289-3311, December.

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