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Banking Trends: How and Why Bank Capital Ratios Change Over the Business Cycle

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  • PJ Elliott

Abstract

Small-bank and large-bank capital ratios behave quite differently. To under-stand the difference, look at the data.

Suggested Citation

  • PJ Elliott, 2021. "Banking Trends: How and Why Bank Capital Ratios Change Over the Business Cycle," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 6(1), pages 17-22, March.
    • Handle: RePEc:fip:fedpei:90265
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    References listed on IDEAS

    as
    1. Joseph G. Haubrich, 2020. "How Cyclical Is Bank Capital?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 58(1), pages 27-38, August.
    2. Jokipii, Terhi & Milne, Alistair, 2008. "The cyclical behaviour of European bank capital buffers," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1440-1451, August.
    3. Randal K. Quarles, 2018. "Getting It Right: Factors for Tailoring Supervision and Regulation of Large Financial Institutions: a speech at American Bankers Association Summer Leadership Meeting, Salt Lake City, Utah," Speech 1008, Board of Governors of the Federal Reserve System (U.S.).
    4. Ayuso, Juan & Perez, Daniel & Saurina, Jesus, 2004. "Are capital buffers pro-cyclical?: Evidence from Spanish panel data," Journal of Financial Intermediation, Elsevier, vol. 13(2), pages 249-264, April.
    5. Lael Brainard, 2018. "Assessing Financial Stability over the Cycle: a speech at the Peterson Institute for International Economics, Washington, D.C," Speech 1029, Board of Governors of the Federal Reserve System (U.S.).
    6. Ronel Elul, 2013. "The promise and challenges of bank capital reform," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 23-30.
    7. Jeremy C. Stein & Anil K. Kashyap, 2000. "What Do a Million Observations on Banks Say about the Transmission of Monetary Policy?," American Economic Review, American Economic Association, vol. 90(3), pages 407-428, June.
    8. Shim, Jeungbo, 2013. "Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 761-772.
    9. repec:fip:fedpbr:y:2013:i:q3:p:23-30:n:96 is not listed on IDEAS
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