Procyclicality in banking may result in financial instability and therefore be destructive to economic growth. The … whole business cycle. Application of the SURE approach to 13 OECD countries in 1995-2009 shows that the procyclicality of …

capital on lending is relatively strong in cooperative banks and savings banks. We also expect that this effect is nonlinear … database. Our analysis shows that lending of poorly capitalized banks is more affected by capital ratio than lending of well … capitalized banks. Loan growth of cooperative and savings banks is more capital constrained that lending of commercial banks …

After analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality … limit procyclicality. The case of Spainthe country with the longest experienceis reviewed, as well as those of Colombia and …

The impact of the business cycle on banks’ internally generated cash flow is an important driver in the pro …

While the new capital adequacy framework, Basel II, aims to make the banks’ capital requirements more sensitive to the … underlying risk of the assets, it may also introduce an additional source of procyclicality in the banking sector. A growing … share of the literature has assessed the potential cyclicality of Basel II. However, only parts of the banks’ assets have …

concepts of pro-cyclicality, leverage and systemic risk. The model is presented in the second section and the macroeconomic …

Procyclicality in banking may result in financial instability and therefore be destructive to economic growth. The … whole business cycle. Application of the SURE approach to 13 OECD countries in 1995-2009 shows that the procyclicality of …

procyclicality has transformed banks from mitigation mechanisms to amplifiers of changes in economic activity, potentially affecting …The recent global financial crisis has highlighted the importance of the procyclicality of the financial sector. The … financial stability and economic growth. The causes of procyclicality can be attributed to market imperfections and deviations …

tools whose role is to reduce the ability of banks to damage the economy by taking on excess risk. Among them is registered … the dynamic provisions intended to be used for enhancing bank soundness and to help mitigate part of the pro-cyclicality … involved, namely the banks, the regulatory authority and accounting organizations, to realize the importance of loan loss …

. Hence, banks build up larger capital buffers which (i) lowers the public losses in case of a systemic crisis and (ii …) restores the banking sector’s lending capacity after the short-term credit crunch induced by tighter regulation. We confirm our … model’s dynamic implications in a panel VAR estimation, which suggests that bank lending has even increased in the long …