Arbeitspapier

Loan supply and bank capital: A micro-macro linkage

In the presence of financial frictions, banks' capital position may constrain their ability to provide loans. The banking sector may thus have important feedback effects on the macroeconomy. To shed new light on this issue, we combine two approaches. First, we use microeconomic balance sheet data from Germany and estimate banks' loan supply response to capital changes. Second, we modify the model of Gertler and Karadi (2011) such that it can be calibrated to the estimated partial equilibrium elasticity of bank loan supply with respect to bank capital. Although the targeted elasticity is remarkably different from the one in the baseline model, banks continue to be an important originator and amplifier of macroeconomic shocks. Thus, combining microeconometric results with macroeconomic modeling provides evidence on the effects of the banking sector on the macroeconomy.

ISBN
978-3-95729-713-6
Sprache
Englisch

Erschienen in
Series: Deutsche Bundesbank Discussion Paper ; No. 27/2020

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Thema
DSGE
Bank Capital
Loan Supply
Financial Frictions

Ereignis
Geistige Schöpfung
(wer)
Kick, Thomas
Malinkovich, Swetlana
Merkl, Christian
Ereignis
Veröffentlichung
(wer)
Deutsche Bundesbank
(wo)
Frankfurt a. M.
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kick, Thomas
  • Malinkovich, Swetlana
  • Merkl, Christian
  • Deutsche Bundesbank

Entstanden

  • 2020

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