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Funding Structure, Procyclicality and Lending: Evidence from GCC Banks

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  • Ghosh Saibal

    (Reserve Bank of India, Central Office, Fort, Mumbai 400001 India)

Abstract

The article 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. Robustness checks lend credence to these findings.

Suggested Citation

  • Ghosh Saibal, 2013. "Funding Structure, Procyclicality and Lending: Evidence from GCC Banks," Review of Middle East Economics and Finance, De Gruyter, vol. 9(2), pages 241-270, August.
    • Handle: RePEc:bpj:rmeecf:v:9:y:2013:i:2:p:241-270:n:1
    DOI: 10.1515/rmeef-2012-0007
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    Cited by:

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

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