What is it about?
Covid 19 caused banks to adjust their capital positions. This paper discusses how some factors that typically determine capital structure like profitability, size and competition lost significance while factors like monetary policy became more important
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Why is it important?
It’s important because it suggests that monetary policy has a significant impact on capital structure decision making of banks and can positivity or adversely effect bank liabilities and ultimately lending.
Perspectives
Monetary policy becomes especially important during recessions
Khalil Ullah Mohammad
Bahria University
Read the Original
This page is a summary of: How bank capital structure decision-making change in recessions: Covid-19 evidence from Pakistan, Asian Journal of Economics and Banking, November 2021, Emerald,
DOI: 10.1108/ajeb-04-2021-0049.
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