The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland

• Authors: Paweł Bojar , Małgorzata Anna Olszak

Abstracts

EN

This paper aims to determine the role of the expected credit loss approach as defined 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 find 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 financial stability and have implications for the conduct of macroprudential policy.

Keywords

EN

loans growth rate; capital ratio; expected credit loss; IRFS 9

• Publisher: Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
• Journal: Journal of Banking and Financial Economics
• Year: 2022
• Issue: 1(17)
• Pages: 60-73

Dates

published

2022

Contributors

author

Paweł Bojar

• Faculty of Management, University of Warsaw

• https://orcid.org/0000000209162706

author

Małgorzata Anna Olszak

• Faculty of Management, University of Warsaw

• https://orcid.org/0000000189205309

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Identifiers

DOI

10.7172/2353-6845.jbfe.2022.1.4

Biblioteka Nauki

2162651