RELATION BETWEEN CYCLICAL BEHAVIOR, BANK LENDING AND FINANCIAL STABILITY FOR CONVENTIONAL BANKS IN GOLF COOPERATION COUNTRIES

Authors

  • Amara Tijani, Wissem Ben Ali

DOI:

https://doi.org/10.17762/msea.v71i4.618

Abstract

This study aims to test the cyclical behavior of banking stability using panel dynamic data in GMM estimator on a comprehensive dataset of 73 banks, from selected Golf Cooperation Countries for the period of 2000-2019, we find that cyclicality and banking risk  have a negative impact, demonstrating that financial stability is procyclical. Furthermore, our results document that credit activities rises bank risk while also increasing bank equity to maintain banking stability. Our results shows that the relationship of conventional banks cyclicality’s with capital regulation and credit activities may vary with bank size. As a result, small bank credits and capital are procyclical by banks reducing their credit activities and equity requirements, unlike large bank, which are anticyclical.

Downloads

Published

2022-08-29

How to Cite

Amara Tijani, Wissem Ben Ali. (2022). RELATION BETWEEN CYCLICAL BEHAVIOR, BANK LENDING AND FINANCIAL STABILITY FOR CONVENTIONAL BANKS IN GOLF COOPERATION COUNTRIES. Mathematical Statistician and Engineering Applications, 71(4), 1210–1230. https://doi.org/10.17762/msea.v71i4.618

Issue

Section

Articles