Reforms cut risk-taking by G-Sibs – ECB paper

Reforms brought in after 2012 reduced risky behaviour by global systemically important banks, or G-Sibs, without harming overall credit supply, a paper published by the European Central Bank finds.

In The impact of G-Sib identification on bank lending: evidence from syndicated loans, Markus Behn and Alexander Schramm assemble a granular dataset on loans by different kinds of banks since the reforms were introduced as part of the Basel III process. They study the reforms’ effects on banks’ loan