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

"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 importa...

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Autores Principales: García-Suaza, Andrés Felipe, Gómez-González, José E., Pabón, Andrés Murcia, Tenjo-Galarza, Fernando
Formato: Artículo (Article)
Lenguaje:Inglés (English)
Publicado: 2012
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/23888
https://doi.org/10.1016/j.econmod.2012.05.021
id ir-10336-23888
recordtype dspace
spelling ir-10336-238882021-01-21T08:31:27Z 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 Bank capital buffers Colombia Credit risk Regulation "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." 2012 2020-05-26T00:06:24Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 2649993 https://repository.urosario.edu.co/handle/10336/23888 https://doi.org/10.1016/j.econmod.2012.05.021 eng info:eu-repo/semantics/openAccess application/pdf instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Bank capital buffers
Colombia
Credit risk
Regulation
spellingShingle Bank capital buffers
Colombia
Credit risk
Regulation
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
description "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."
format Artículo (Article)
author García-Suaza, Andrés Felipe
Gómez-González, José E.
Pabón, Andrés Murcia
Tenjo-Galarza, Fernando
author_facet García-Suaza, Andrés Felipe
Gómez-González, José E.
Pabón, Andrés Murcia
Tenjo-Galarza, Fernando
author_sort García-Suaza, Andrés Felipe
title The cyclical behavior of bank capital buffers in an emerging economy: Size does matter
title_short The cyclical behavior of bank capital buffers in an emerging economy: Size does matter
title_full The cyclical behavior of bank capital buffers in an emerging economy: Size does matter
title_fullStr The cyclical behavior of bank capital buffers in an emerging economy: Size does matter
title_full_unstemmed The cyclical behavior of bank capital buffers in an emerging economy: Size does matter
title_sort cyclical behavior of bank capital buffers in an emerging economy: size does matter
publishDate 2012
url https://repository.urosario.edu.co/handle/10336/23888
https://doi.org/10.1016/j.econmod.2012.05.021
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score 11,828437