The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland
This paper aims to determine the role of the expected credit loss approach as defined in IFRS 9 in the effects of capital ratio on loans growth in publicly traded banks in Poland. To resolve this problem, we apply semi-annual data of individual banks in 2012–2018. Using several estimation techniq...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Warsaw
2022-08-01
|
| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1018&context=jbfe |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This paper aims to determine the role of the expected credit loss approach as defined in IFRS 9
in the effects of capital ratio on loans growth in publicly traded banks in Poland. To resolve this
problem, we apply semi-annual data of individual banks in 2012–2018. Using several estimation
techniques, we find that in the period of implementation of the expected credit loss approach, the
links between loans growth and the capital ratio were enhanced. In particular, lending growth is
more sensitive to levels of the capital ratio. These results are important with respect to the goal of
bank financial stability and have implications for the conduct of macroprudential policy. |
|---|---|
| ISSN: | 2353-6845 |