The cyclical behavior of bank capital buffers in an emerging economy: Size does matter

Andrés Felipe García-Suaza, José E. Gómez-González, Andrés Murcia Pabón, Fernando Tenjo-Galarza

Resultado de la investigación: Contribución a RevistaArtículo

15 Citas (Scopus)

Resumen

Using a panel of Colombian banks and quarterly data between 1996:1 and 2010:3, we study the relationship between short-run adjustments in bank capital buffers and the business cycle. We follow a partial adjustment framework and control for several variables that have been identified as important determinants of bank capital buffers in previous studies, and find that bank capital buffers vary over the business cycle. We are able to identify a negative co-movement of capital buffers and the business cycle. However, we also find that capital buffers of small and large banks behave asymmetrically during the business cycle. While the former appear to be constant over time, once the appropriate set of control variables is used, the latter present a countercyclical behavior. Our results suggest the possible need of the implementation of regulatory policy measures in developing countries. © 2012 Elsevier B.V.
Idioma originalEnglish (US)
Páginas (desde-hasta)1612-1617
Número de páginas6
PublicaciónEconomic Modelling
DOI
EstadoPublished - sep 1 2012

Huella dactilar

Buffer
Emerging economies
Bank capital
Business cycles
Control variable
Partial adjustment
Developing countries
Policy measures
Comovement
Short-run
Regulatory policy

Citar esto

García-Suaza, A. F., Gómez-González, J. E., Pabón, A. M., & Tenjo-Galarza, F. (2012). The cyclical behavior of bank capital buffers in an emerging economy: Size does matter. Economic Modelling, 1612-1617. https://doi.org/10.1016/j.econmod.2012.05.021
García-Suaza, Andrés Felipe ; Gómez-González, José E. ; Pabón, Andrés Murcia ; Tenjo-Galarza, Fernando. / The cyclical behavior of bank capital buffers in an emerging economy: Size does matter. En: Economic Modelling. 2012 ; pp. 1612-1617.
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The cyclical behavior of bank capital buffers in an emerging economy: Size does matter. / García-Suaza, Andrés Felipe; Gómez-González, José E.; Pabón, Andrés Murcia; Tenjo-Galarza, Fernando.

En: Economic Modelling, 01.09.2012, p. 1612-1617.

Resultado de la investigación: Contribución a RevistaArtículo

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