Logo Lanfrica
  • Accueil
  • Atlas
  • Analyses
  • Documentation
  • Sign in

© 2026 Lanfrica. Tous droits réservés. Tous les droits d'auteur des ressources affichées sur le site Web Lanfrica appartiennent aux détenteurs de droits d'auteur d'origine, sauf indication contraire explicite.

Linking bank regulatory capital buffer to business cycle fluctuations

Domaine:

socioeconomic

Type de record:

paper
Créateur:
:KoJOH
Éditeur:
Eme
Hôte:
Purpose The purpose of this paper is to assist bank regulators in Africa who are currently considering the implementation of Basel III countercyclical capital buffer (CCB) requirement. Design/methodology/approach Using a panel data set of 129 commercial banks operating in 14 African countries over the period 2004–2014, this paper estimates the system generalized method of moments regression to examine the impact of business cycle on banks’ regulatory capital buffers and attempts to identify the influence of bank revenue diversification, market power and cost of funding ( CF ) on bank regulatory capital buffers. It further carries out some robustness analyses using a panel data set of 257 commercial banks in 23 African countries over the period 2004–2014. Findings The results show that higher regulatory capital buffers are associated with higher market power, higher revenue diversification and higher CF . Additionally, the results show significant evidence of procyclical behavior of bank capital buffers ( BUF s) in the sampled countries. Practical implications The results of this study suggest that African banking systems are not exposed to contagion and systemic risks arising from countercyclical movements of BUF s to the real economy. Therefore, this study does not support the implementation of the Basel III CCB requirement in the sampled African countries. Originality/value Considering that the results of existing studies on the cyclical behavior of BUF s are inconclusive, there is value in studying the cyclical movements of bank regulatory capital buffers in a set of countries that has not been analyzed before. Toward this direction, this is the first empirical study focusing on the cyclical behavior of bank regulatory capital buffers in Africa. Besides examining the cyclical behavior of bank regulatory capital buffers, this paper further investigates the effects of bank revenue diversification, market power and CF on bank regulatory capital buffers.

Visit

doi.org

Licenses

https://www.emerald.com/insight/site-policies

Similaires

Political Business Cycle, Corporate Transparency and Bank Lending in AfricaBank Regulatory Capital and Performance: Evidence from Sub Saharan AfricaCentral Bank Policies and Market Power Over the Business Cycle in AfricaTrade Intensity and Business Cycle Synchronicity in AfricaLINKING SOFT SKILLS TO BUSINESS EDUCATION TEACHERS’ JOB EFFECTIVENESS IN ILORIN METROPOLIS SECONDARY SCHOOLSForecasting The South African Business Cycle Using Fourier Analysis

Political Business Cycle, Corporate Transparency and Bank Lending in Africa

ABSTRACT: This study examines how political business cycles (PBC) influence bank lending in Africa i

Bank Regulatory Capital and Performance: Evidence from Sub Saharan Africa

Continuous failure of banks witnessed across the Sub Saharan African region is a great source of con

Central Bank Policies and Market Power Over the Business Cycle in Africa

This article empirically examines the impact of the business cycle on the relationship between indiv

Trade Intensity and Business Cycle Synchronicity in Africa

International audience Business cycle synchronicity, which is the key requirement for

LINKING SOFT SKILLS TO BUSINESS EDUCATION TEACHERS’ JOB EFFECTIVENESS IN ILORIN METROPOLIS SECONDARY SCHOOLS

Soft skills are regarded as combination of social, emotional, communication and personal skills whic

Forecasting The South African Business Cycle Using Fourier Analysis

A Fourier transform analysis is proposed to determine the duration of the South African business cyc