Pro-Cyclical Banking Leverage in France: On its Existence and Management

Article


D'Avino, C. 2015. Pro-Cyclical Banking Leverage in France: On its Existence and Management. Journal of Applied Finance & Banking. 5 (5), pp. 185-199.
AuthorsD'Avino, C.
Abstract

The paper proposes several facts in support of the evidence that French banks actively manage their leverage. Impulse responses estimated from multivariate models allow assessing which balance sheet claims are used by banks to fine-tune their leverage. It is found that leverage adjustments are primarily attained through changes in domestic and foreign credit. The dynamic pattern of leverage is less affected by shocks to securities holdings, implying that the amplifying mechanism on the real economy that occurs via leverage adjustment is expected to work directly via bank credit rather than via asset markets.

JournalJournal of Applied Finance & Banking
Journal citation5 (5), pp. 185-199
ISSN1792 - 6580
1792 - 6599
Year2015
PublisherScienpress, Ltd.
Accepted author manuscript
License
CC BY
Web address (URL)http://www.scienpress.com/journal_focus.asp?Main_Id=56
Publication dates
Print01 Sep 2015
Publication process dates
Deposited28 Oct 2015
Permalink -

https://repository.uel.ac.uk/item/854xy

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