The impact of COVID-19 and bank capital ratio on loan changes of ASEAN-5’s banking industry

Q1 Social Sciences Banks and Bank Systems Pub Date : 2023-02-17 DOI:10.21511/bbs.18(1).2023.07

Michael Abraham Hukom, Arief Wibisono Lubis

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引用次数: 1

Abstract

The COVID-19 pandemic has affected economies around the world, including the banking industry, and this depends on various factors. The aim of this study is to understand the influence of COVID-19 independently and through the moderation of bank capital ratios on changes in loans of Association of Southeast Asian Nations 5 (ASEAN-5) banking industry players. The study uses a sample of 86 banking companies listed on the stock markets of Indonesia, Malaysia, the Philippines, Singapore, and Thailand from the first quarter of 2018 to the fourth quarter of 2020 by employing the panel data regression technique. The results showed that COVID-19 had a significant negative effect on changes in bank lending. However, a bank’s capital ratio was not found to play a role in moderating the effect of COVID-19 on changes in bank lending. These findings have three main implications: (i) the role of the government in recapitalization and liquidity injection can eliminate differences in behavior between banks with the classification of capital ratios; (ii) there are no signs of zombie lending in ASEAN-5’s banking industry; and (iii) regulating incentives to change bank lending behavior in future crises must take into account that bank capital categorization will not be effective. AcknowledgmentThis study was made possible with the support of a research grant by Universitas Indonesia number NKB-533/UN2.RST/HKP.05.00/2022.

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新冠肺炎疫情和银行资本充足率对东盟五国银行业贷款变化的影响

新冠肺炎疫情对包括银行业在内的全球经济产生了影响，这取决于多种因素。本研究的目的是独立了解COVID-19的影响，并通过银行资本比率对东南亚国家联盟5国(东盟5国)银行业参与者贷款变化的调节。本研究采用面板数据回归技术，以2018年第一季度至2020年第四季度在印度尼西亚、马来西亚、菲律宾、新加坡和泰国股市上市的86家银行公司为样本。结果显示，新冠肺炎疫情对银行贷款的变化产生了显著的负面影响。然而，银行的资本充足率并未在减缓新冠肺炎疫情对银行贷款变化的影响方面发挥作用。这些发现有三个主要含义:(i)政府在资本重组和流动性注入中的作用可以消除资本比率分类的银行之间的行为差异;(ii)东盟五国的银行业没有僵尸贷款的迹象;(三)在未来危机中调节激励措施以改变银行贷款行为必须考虑到银行资本分类将不会有效。本研究得到了印度尼西亚大学编号为NKB-533/UN2.RST/HKP.05.00/2022的研究资助。

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来源期刊

Banks and Bank Systems Social Sciences-Law

CiteScore

2.60

自引率

0.00%

发文量

审稿时长

11 weeks

期刊介绍： The journal focuses on the results of scientific researches on monetary policy issues in different countries and regions all over the world. It also analyzes the activities of international financial organizations, central banks, and bank institutions. Key topics: -Monetary Policy in Different Countries and Regions; -Monetary and Payment Systems; -International Financial Organizations and Institutions; -Monetary Policy of Central Banks; -Organizational Structure, Functions and Activities of Central Banks; -State Policy and Regulation of Banking; -Bank Competitiveness; -Banks at the Financial Markets; -Bank Associations and Conglomerates; -International Payment Systems; -Investment Banking; -Financial Risks and Risk Management in Banks; -Capital and Ownership Structure, Bankruptcy and Liquidation, Mergers and Acquisitions of Banks; -Corporate Governance and Goodwill; -Personnel Management in Banks; -Econometric, Statistical Methods; Econometric Modeling of Bank Activities; -Bank Ratings.