The recapitalisation of bank balance sheets may not translate into greater credit supply until they are sufficiently strengthened to boost risk-weighted capital ratios, according to a Bank for International Settlements paper published on Monday.

Michael Brei, Leonardo Gambacorta and Goetz von Peter, the paper's authors, use a dataset covering large international banks headquartered in 14 major advanced economies between 1995 and 2010 to examine whether the rescue measures adopted during the