Size-conditioned mandatory capital adequacy disclosure and bank intermediation

Natalya Zelenyuk*, Robert Faff, Shams Pathan

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)4387-4417
JournalAccounting and Finance
Volume60
Issue number4
Early online date16 Sep 2019
DOIs
Publication statusPublished - Dec 2020
Externally publishedYes

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