Impact of Business Cycles on Capital Buffers in the Iranian Banking System
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Mahshid Shahchera *, Ali Hasanzadeh, Simin MirHashemi |
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Abstract: (2682 Views) |
In this paper, the effect of business cycle on the capital buffer of Iranian banking system is analyzed. Two models are estimated using Generalized Method of Moments (2001-2009). The results indicate that in the first model, the reserve requirements ratio (as an index of monetary policy), business cycles, the size of banks and non-performing loans have a significant inverse effect on bank capital buffers. But return on equity variable and bank capital buffers in the previous period have a significant positive effect on bank capital buffers. The results of the second model indicate that bank capital buffers and loan growth rate in the previous period and business cycle have a significant positive effect on loan growth rate variable. |
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Full-Text [PDF 544 kb]
(1752 Downloads)
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Type of Study: Empirical Study |
Received: 2015/06/24 | Accepted: 2015/06/24 | Published: 2015/06/24
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