Agency Meets Stability: The Effect of Corporate Governance and Capital Requirements on Bank Lending

Higher capital requirements cut lending at weakly governed banks but raise it at strongly governed banks.

Joshua Bosshardt, Ali Kakhbod, Kunal Sachdeva

Working paper, 2023

Higher capital requirements cut lending at weakly governed banks but raise it at strongly governed banks.

Capital requirements have divergent effects on bank lending depending on the level of shareholder protection in bank management, highlighting the importance of considering governance in banking regulation.

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@techreport{bosshardt2023agency,
  title={Agency Meets Stability: The Effect of Corporate Governance and Capital Requirements on Bank Lending},
  author={Bosshardt, Joshua and Kakhbod, Ali and Sachdeva, Kunal},
  year={2023},
  type={SSRN Working Paper},
  institution={Social Science Research Network},
  number={4342126},
  doi={10.2139/ssrn.4342126}
}

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