Goal of the Analysis

If we make an equity investment in a bank, increasing its regulatory capital as a percent of assets, will the bank increase its lending?

In addition:

• What types of loans will the bank increase?
• Has the relationship changed over time?
• Will this increase Non-Performing Assets?

What You Will Need

The data set is large, and you'll need to use some fairly sophiticated statistical/machine learning models, so consider the following:

• You'll need to use R, Python, or similar. Excel won't cut it.
• If you would like me to help you write the code, you'll need a (free) Github account.

Panel Data Set

I have created a panel data set, which you can download from here.

Credits and Collaboration

Click the following links to see the code, authors of this presentation.