Funding structure, procyclicality and lending: Evidence from GCC banks
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
|Date of creation:||Aug 2013|
|Date of revision:|
|Publication status:||Published in Review of Middle East Economics and Finance 2.9(2013): pp. 241-270|
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