The Impact of Oil Prices on the Banking System in the GCC

Author/Editor: Padamja Khandelwal ; Ken Miyajima ; Andre O Santos
Publication Date: August 05, 2016
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper examines the links between global oil price movements and macroeconomic and financial developments in the GCC. Using a range of multivariate panel approaches, including a panel vector autoregression approach, it finds strong empirical evidence of feedback loops between oil price movements, bank balance sheets, and asset prices. Empirical evidence also suggests that bank capital and provisioning have behaved countercyclically through the cycle.
Series: Working Paper No. 16/161
Subject(s): Oil prices | Cooperation Council for the Arab States of the Gulf | Banking sector | Bank capital | Non-performing loans | Panel analysis | Vector autoregression | Econometric models

Publication Date: August 05, 2016
ISBN/ISSN: 9781475523393/1018-5941 Format: Paper
Stock No: WPIEA2016161 Pages: 23
US$18.00 (Academic Rate:
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