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Funding structure, procyclicality and lending: Evidence from GCC banks

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  • Ghosh, Saibal

Abstract

The paper examines whether banks’ funding structure amplifies procyclicality. Using data for GCC banks for the period 1996-2009, the evidence suggests that banks with higher wholesale dependence cut back lending by a greater amount. In addition, the procyclicality of the financial system and the crisis exacerbates the effect, although the results differ across bank ownership

Suggested Citation

  • Ghosh, Saibal, 2013. "Funding structure, procyclicality and lending: Evidence from GCC banks," MPRA Paper 51225, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51225
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    Cited by:

    1. Ken Miyajima, 2020. "What influences bank lending in Saudi Arabia?," Islamic Economic Studies, Emerald Group Publishing Limited, vol. 27(2), pages 125-155, April.
    2. Aivazian, Varouj & Gu, Xinhua & Qiu, Jiaping & Huang, Bihong, 2015. "Loan collateral, corporate investment, and business cycle," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 380-392.
    3. Saibal Ghosh, 2016. "Foreign banks in MENA countries: how important? How relevant?," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 32(1), pages 77-98, May.

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    More about this item

    Keywords

    Wholesale dependence; Bank lending; Procyclicality; Commercial banks; Islamic banks; Crisis; GCC countries;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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