Wpływ wyższych wymogów kapitałowych w sektorze bankowym na wzrost gospodarczy
The impact of higher capital requirements in the banking sector on economic growth

Summary/Abstract: Financial stability can be seen as the maintenance of proper conditions for financial intermediation in the economy while maintaining an acceptable risk. One of long-term objectives of supervisors are the recommendations for capital requirements in the banking sector related to the solvency ratio, within the micro- and macro-prudential policy oriented on systemic risks. It could affect lending and economic processes in the real economy. This paper presents a multi-equational model to analyze an effective demand for credit. On the basis of a simulation analysis for the banking sector in Poland it can be inferred that the increase in average capital adequacy ratio could lead to a moderate increase in lending rates and a slight decline in GDP growth. Consequently, additional capital requirements should not have a significant impact on the price of credit.

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