Release Time:2019-03-12  Hits:

Indexed by: Conference Paper

Date of Publication: 2014-01-01

Included Journals: CPCI-SSH

Page Number: 390-394

Key Words: Banks' Risk-taking; Credit Scale; Capital Constraints

Abstract: Both the Subprime crisis in 2007 and the European Debt Crisis in 2011 have highlighted the importance of banking supervision. We use GMM method to inspect effects of banks' risk-taking and macroeconomic factors on credit scale, and conclude that: credit scale is negative with bank risk-taking level and capital constraints, but positive with monetary policy. Therefore bank managers should adjust an optimal credit scale based on risk tolerance level; regulatory authorities should make use of capital constraints and monetary policy to restrain banks' risk-taking and credit scale.