This paper studies episodes in which aggregate bank credit contracts alongside expanding economic activity-credit …--on average, they occur every five years. By comparison, banking crises take place every eight years on average. Credit reversals …

higher capital requirements have a short-lived, negative impact on bank credit in Peru, although this effect becomes …This paper offers novel evidence on the impact of raising bank capital requirements in the context of an emerging … market: Peru. Using quarterly bank-level data and exploiting the adoption of bank-specific capital buffers, we find that …

Assessing when credit is excessive is important to understand macro-financial vulnerabilities and guide macroprudential … policy. The Basel Credit Gap (BCG) - the deviation of the credit-to-GDP ratio from its long-term trend estimated with a one … warning of banking crises. However, for a number of European countries this indicator implausibly suggests that credit should …

This paper reviews the rules in place in selected countries to limit risk concentrations in the credit portfolio. The … paper focuses on a number of issues suggested by international organizations for countries and bank supervisors to consider … in imposing standards for risk diversification in the credit portfolio. The issues reviewed for each country are the …

better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the … became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by … supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4 …

Credit is key to support healthy and sustainable economic growth but excess aggregate credit growth can signal the … build-up of imbalances and lead to systemic financial crisis. Hence, monitoring the credit cycle is key to identifying … flows. We estimate the credit cycle in Central America, Panama, and the Dominican Republic and find that the creadit gap is …

a bank. Failure to identify deterioration in credit quality in a timely manner can aggravate and prolong the problem …Adequate loan classification practices are an essential part of a sound and effective credit risk-management process in …

Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre …

This paper investigates the impact of the new capital requirements introduced under the Basel III framework on bank …