The Impact of Oil Prices on the Banking System in the GCC
August 5, 2016
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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.
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
Keywords: asset price appreciation, bank asset quality, Capital adequacy requirements, Credit, Financial cycles, GCC bank, Global, Macro-financial linkages, nonperforming loans, NPL ratio, oil price, Oil prices, panel vector autoregression, price growth, WP
Pages:
23
Volume:
2016
DOI:
Issue:
161
Series:
Working Paper No. 2016/161
Stock No:
WPIEA2016161
ISBN:
9781475523393
ISSN:
1018-5941
