Impact of Bank Regulatory Capital Requirements: On Canadian Banks' Gross Lending Volume
摘要
This chapter investigated the impact of changes in regulatory capital requirements on the volume of gross loans offered by Canadian banks to the non-financial sector, using econometric methodologies. The study used a sample of annual financial statistics of Canadian financial institutions from 2012 to 2021, from Fitch Connect database, over the period of 2012 to 2021. The data also encompasses macroeconomic statistics from the Bank of Canada, BIS, and Economic Policy Uncertainty Research Group. The results found that increases in Canadian regulatory bank capital requirement ratio led to a decrease in the volume of gross loan offered by Canadian banks to the non-financial sector, over the current year, considering macroeconomic control variables.