Size-conditioned mandatory capital adequacy disclosure and bank intermediation

© 2019 Accounting and Finance Association of Australia and New Zealand We add to the literature on the real effects of macroprudential regulation by investigating the novel link between a mandatory capital adequacy disclosure and bank intermediation. The mandatory disclosure stems from the Federal R...

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Bibliographic Details
Main Authors: Zelenyuk, N., Faff, R., Pathan, Md Shams Tabrize
Format: Journal Article
Language:English
Published: WILEY 2019
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/77007
Description
Summary:© 2019 Accounting and Finance Association of Australia and New Zealand We add to the literature on the real effects of macroprudential regulation by investigating the novel link between a mandatory capital adequacy disclosure and bank intermediation. The mandatory disclosure stems from the Federal Reserve regulation change of 2013 and leads to identification of bank intermediation effects with treatment methods. A combined empirical strategy of difference-in-differences and regression discontinuity design point to economically significant evidence for the reduction of both lending and on-balance sheet liquidity creation, for banks that disclose their capital adequacy as prescribed by the regulation.