IDEAS home Printed from https://ideas.repec.org/a/bla/pacecr/v24y2019i3p493-507.html
   My bibliography  Save this article

How changes in global liquidity affect dynamics of banks’ leverage: A case in Hong Kong

Author

Listed:
  • Kelvin Ho
  • Cho‐Hoi Hui
  • Ka‐Fai Li
  • Jim Wong

Abstract

This paper examines how abundant global liquidity could influence the adjustment of banks’ leverage. Using banks in Hong Kong as an example, we find that the global liquidity effect is significant, and that mean reversion of banks’ leverage may under certain circumstances be more than offset by abundant global liquidity. Furthermore, we find that changes in global liquidity not only affect the level of leverage adjustment but also the adjustment speed of banks’ leverage.

Suggested Citation

  • Kelvin Ho & Cho‐Hoi Hui & Ka‐Fai Li & Jim Wong, 2019. "How changes in global liquidity affect dynamics of banks’ leverage: A case in Hong Kong," Pacific Economic Review, Wiley Blackwell, vol. 24(3), pages 493-507, August.
    • Handle: RePEc:bla:pacecr:v:24:y:2019:i:3:p:493-507
    DOI: 10.1111/1468-0106.12263
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-0106.12263
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-0106.12263?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:pacecr:v:24:y:2019:i:3:p:493-507. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.