Abstract
The purpose of the study is to empirically investigate the various relationships between the bank capital ratio and the corporate bank loans by using micro firm level data. We analyzed all non-financial listed companies in Korea between 2002 and 2012. The results showed a positive relationship between bank capital ratio and the corporate main bank loans. It supports the pro-cyclicality of bank capital ratio in corporate bank loans. However, we found a negative relationship between bank capital ratio and firm’s main bank loan ratio. We inferred the less pro-cyclicality of bank capital ratio in the main bank-firm relationship. In addition, we found the significant impacts of BaselⅡ capital regulation and bank size on the relationships between bank capital ratio and bank corporate loan or main bank loan ratio.
| Translated title of the contribution | Bank Capital Ratio and Corporate Loan of Main Bank |
|---|---|
| Original language | Korean |
| Pages (from-to) | 105-132 |
| Number of pages | 28 |
| Journal | 금융안정연구 |
| Volume | 20 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jun 2019 |