Bank Capital and Real GDP Growth

Bank Profitability and Gdp Growth in China: a Note

This article examines the effect of GDP growth on bank profitability in China over the period 2003-2009. The one-step system GMM estimator is used to test the persistence of profitability in Chinese banking industry. The empirical findings suggest that cost efficiency is positively related to bank profitability, while lower profitability can also be explained by higher taxes paid by banks. In a...

Bank Capital and Risk-Taking

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Bank Capital and Monetary Policy ∗

This paper develops a quantitative, monetary model in which agency problems affect both the relationship between banks and firms as well as that linking banks to their depositors. As a result, bank capital and entrepreneurial net worth jointly determine aggregate investment, and help propagate over time shocks affecting the economy. We find that the effects of monetary policy shocks depend on t...

Indicator Models of Real Gdp Growth in Selected Oecd Countries

Bank Capital and Aggregate Credit

This paper seeks to explain the role of bank capital in uctuations of lending and output. We build a continuous time model of an economy in which commercial banks nance their loans by deposits and equity, while facing issuance costs when they raise new equity. The dynamics of the loan rate and the volume of lending in the economy are driven by aggregate bank capitalization. The model has a uniq...