Canadian Bank Capital and Liquidity Creation*

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2024-08-18 DOI:10.1111/ajfs.12493

Madhu Garg, Lawrence Kryzanowski, Jie Zhang

引用次数: 0

Abstract

We find a significantly positive relationship between the Tier 1 capital ratio and on-balance-sheet liquidity creation for Canadian Big Six banks, implying that large banks in Canada can take risk due to risk absorption by using capital to fund illiquid assets. Our results are robust to the 2018 initiation of a domestic stability buffer (DSB) of total risk-weighted assets for Pillar 2 risks, core deposits financing, non-deposit funding restrictions, and bank mergers and acquisitions. The positive relation (regulatory capital ratio with liquidity creation) becomes significantly negative during the 2007–9 Global Financial Crisis and COVID-19 pandemic.

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加拿大银行资本和流动性创造*

我们发现，加拿大六大银行的一级资本比率与资产负债表上流动性创造之间存在明显的正相关关系，这意味着加拿大的大型银行可以通过利用资本为非流动性资产提供资金来吸收风险。我们的结果对 2018 年针对第二支柱风险、核心存款融资、非存款融资限制和银行并购启动总风险加权资产的国内稳定缓冲（DSB）是稳健的。在 2007-9 年全球金融危机和 COVID-19 大流行期间，正相关关系（监管资本比率与流动性创造）显著变为负相关关系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.