By developing two models to estimate the effect of business cycle on bank's capital buffer and the effect of capital buffer on bank's loan supply on annual panel data (1997-2009) of 63 commercial banks in five ASEAN countries, we find strong evidence of procyclicality pattern of capital buffer...

We examine the association of the business cycle and revenue diversification with the banks' capital buffer and credit risk for a sample of banks from the Association of Southeast Asian Nations (ASEAN) region from 1998 to 2018, using 2,847 banking firm–year observations. We find that ASEAN...