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

Author/Editor:

Padamja Khandelwal ; Ken Miyajima ; Andre O Santos

Publication Date:

August 5, 2016

Electronic Access:

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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. 2016/161

Subject:

Banking Capital adequacy requirements Credit Financial cycles Financial institutions Financial regulation and supervision Financial sector policy and analysis Money Nonperforming loans Oil prices Prices

English

Publication Date:

August 5, 2016

ISBN/ISSN:

9781475523393/1018-5941

Stock No:

WPIEA2016161

Pages:

23

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