02069cas a2200253 a 4500 AALejournalIMF021002 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513548104 1018-5941 BD-DhAAL BD-DhAAL Igan, Deniz. Does Going Tough on Banks Make the Going Get Tough? : Bank Liquidity Regulations, Capital Requirements, and Sectoral Activity / Deniz Igan, Ali Mirzaei. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (64 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 Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank liquidity and capital levels were related to differences in sectoral activity around the period of the global financial crisis. We find that industries which are more dependent on external finance, in countries where banks had higher liquidity and capital ratios, performed relatively better during the crisis, with regard to investment rates and the creation of new enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre-crisis period, we find only a marginal link to bank capital. These findings survive a battery of robustness checks and provide some solid support for the tighter prudential measures introduced under Basel III. Mode of access: Internet Mirzaei, Ali. IMF Working Papers; Working Paper ; No. 2020/103 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/103/001.2020.issue-103-en.xml IMF e-Library