, liquidity ratio, and leverage ratio. For the analysis, this paper sets up a theoretical model in which a bank optimizes its … asset and funding structure considering the expected profit and its volatility. Then, an empirical estimation is carried out … price index brings about a rise in the capital ratio but a fall in the liquidity ratio. Also, an increase in the capital …

English Abstract: This paper conducted an empirical estimation for loan amounts and loan interest rates of Korean … commercial banks, and then derived loan demand and supply functions from the estimation.It is found that the call rate, the …