Keywords
loans growth rate; capital ratio; expected credit loss; IRFS 9
Abstract
This paper aims to determine the role of the expected credit loss approach as defi ned in IFRS 9 in the effects of capital ratio on loans growth in publicly traded banks in Poland. To resolve this problem, we apply semi-annual data of individual banks in 2012–2018. Using several estimation techniques, we fi nd that in the period of implementation of the expected credit loss approach, the links between loans growth and the capital ratio were enhanced. In particular, lending growth is more sensitive to levels of the capital ratio. These results are important with respect to the goal of bank fi nancial stability and have implications for the conduct of macroprudential policy.
Recommended Citation
Bojar, P., & Olszak, M. A. (2024). The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland. Journal of Banking and Financial Economics, 2022(17), 60-73. https://doi.org/10.7172/2353-6845.jbfe.2022.1.4
First Page
60
Last Page
73
Page Count
14
Received Date
02 June 2022
Revised Date
17 August 202
Accept Date
19 August 2022
Online Available Date
30 August 2022
DOI
10.7172/2353-6845.jbfe.2022.1.4
JEL Code
E32; G2; G28; G32
Publisher
University of Warsaw