01831cas a2200265 a 4500 AALejournalIMF018037 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484325995 1018-5941 BD-DhAAL BD-DhAAL Catalan, Mario. Bank Capital and Lending : An Extended Framework and Evidence of Nonlinearity / Mario Catalan, Alexander Hoffmaister, Cicilia Anggadewi Harun. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the transmission of bank capital shocks to loan supply in Indonesia. A series of theoretically founded dynamic panel data models are estimated and find nonlinear effects of capital on loan growth: the response of weaker banks to changes in their capital positions is larger than that of stronger banks. This non-linearity implies that not only the level of capital but also its distribution across banks in the financial system affects the transmission of shocks to aggregate lending. Likewise, the effects of bank recapitalization on loan growth depend on banks' starting capital positions and the size of capital injections. Mode of access: Internet Anggadewi Harun, Cicilia. Hoffmaister, Alexander. IMF Working Papers; Working Paper ; No. 2017/252 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/252/001.2017.issue-252-en.xml IMF e-Library