Bank capital buffer releases, public guarantee programs, and dividend bans in Covid-19 Europe
An appraisal
Bibliographic Data
| ID | 21586409 |
|---|---|
| Authors | Alexandra Matyunina (University of Zurich), Steven Ongena (0000-0002-8381-0062, University of Zurich, corresponding author) |
| Year | 2022 |
| Volume | 54 |
| Issue | 1 |
| Pages | 127-152 |
| Publication date | 2022-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | European Journal of Law and Economics (JOURNAL) |
| Journal identifiers | ISSN: 0929-1261 • E-ISSN: 1572-9990 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s10657-022-09734-9 |
| PMID | 35919283 |
| OpenAlex | W4285727206 |
| Language | EN |
| References cited | 28 |
We analyse the recent policy decisions made by the European Central Bank and the national authorities related to capital and shareholders’ remuneration aimed at promoting banking credit supply in COVID-19-afflicted economies. We forecast the impact of the regulatory decisions based on the empirical literature and discuss the factors that reduce the banks’ incentives to expand their loan portfolios. We argue that the introduction of the dividend ban caused a surge in regulatory uncertainty and undermined banks’ market valuation raising the expected funding costs and contributing to the banks’ reluctance to make use of the capital buffers. We develop policy suggestions intended to mitigate this effect
Business · Capital adequacy ratio · Capital requirement · Corporate governance · Dividend · Dividend policy · Economics · Financial system · Incentive · Loan · Market economy · Remuneration · Shareholder · Banking stability, regulation, efficiency · Housing Market and Economics · Insurance and Financial Risk Management · Finance
| Citation velocity | historical |
|---|---|
| Highly cited | No |