The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland
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 techniq...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Warsaw
2022-08-01
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| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=231329 |
| _version_ | 1797226849908031488 |
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| author | Paweł Bojar Małgorzata Anna Olszak |
| author_facet | Paweł Bojar Małgorzata Anna Olszak |
| author_sort | Paweł Bojar |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-24T14:31:27Z |
| format | Article |
| id | doaj.art-b82fd6f271dd43dfb942fbfdb008e75d |
| institution | Directory Open Access Journal |
| issn | 2353-6845 |
| language | English |
| last_indexed | 2024-04-24T14:31:27Z |
| publishDate | 2022-08-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj.art-b82fd6f271dd43dfb942fbfdb008e75d2024-04-03T02:07:46ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452022-08-0120221(17)607310.7172/2353-6845.jbfe.2022.1.4The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in PolandPaweł Bojar0https://orcid.org/0000-0002-0916-2706Małgorzata Anna Olszak1https://orcid.org/0000-0001-8920-5309Faculty of Management, University of WarsawFaculty of Management, University of WarsawThis 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.https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=231329loans growth ratecapital ratioexpected credit lossirfs 9 |
| spellingShingle | Paweł Bojar Małgorzata Anna Olszak 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 loans growth rate capital ratio expected credit loss irfs 9 |
| title | The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland |
| title_full | The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland |
| title_fullStr | The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland |
| title_full_unstemmed | The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland |
| title_short | The Impact of IFRS 9 on the Link Between Lending and the Capital Ratio in Publicly Traded Banks in Poland |
| title_sort | impact of ifrs 9 on the link between lending and the capital ratio in publicly traded banks in poland |
| topic | loans growth rate capital ratio expected credit loss irfs 9 |
| url | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=231329 |
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