{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,2]],"date-time":"2026-10-02T03:49:49Z","timestamp":1790912989307,"version":"4.1.0"},"posted":{"date-parts":[[2021]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Banks with a low price-to-book ratio have a greater propensity to pay out dividends. This propensity is especially marked for banks with a price-to-book ratio below a threshold of 0.7. As a sector, banks also tend to have higher dividend payout ratios than non-financial firms. We demonstrate these features using data for 271 advanced economy banks in 30 jurisdictions. Dividend payouts as a proportion of profits rise in a non-linear way as the price-to-book ratio falls below 0.7. In a hypothetical exercise with fixed balance sheet ratios, we find that a complete suspension of bank dividends in 2020 during the Covid-19 pandemic would have added, under different stress scenario, an additional US$ 0.8\u20131.1 trillion of bank lending capacity in our sample, equivalent to 1.1\u20131.6% of total GDP.<\/jats:p>","DOI":"10.2139\/ssrn.3761864","type":"posted-content","created":{"date-parts":[[2021,1,14]],"date-time":"2021-01-14T22:06:28Z","timestamp":1610661988000},"source":"Crossref","is-referenced-by-count":10,"title":["Low Price-To-Book Ratios and Bank Dividend Payout Policies"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-9895-6590","authenticated-orcid":true,"given":"Leonardo","family":"Gambacorta","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-2819-6960","authenticated-orcid":true,"given":"Tommaso","family":"Oliviero","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Hyun Song","family":"Shin","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,8,13]],"date-time":"2026-08-13T10:35:24Z","timestamp":1786617324000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=3761864"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2021]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.3761864","relation":{},"subject":[],"published":{"date-parts":[[2021]]},"subtype":"preprint"}}