Credit procyclicality and financial regulation in South Africa
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Credit procyclicality and financial regulation in South Africa | |
| Creator | Bernstein, James Raputsoana, Leroi Schaling, Eric | |
| Description | This study assesses the behaviour of credit extension over the business cycle in South Africa for the period 2000 to 2012. This is motivated by the proposal of the Basel Committee on Banking Supervision to look at credit extension over the business cycle as a reference guide for implementing countercyclical capital buffers for financial institutions. The study finds that credit extension in South increases during the trough phase, while the relationship between credit extension and the business cycle becomes insignificant during the peak phase. The study also finds that credit extension decreases during the expansion phase, while it increases during the contraction phase. Thus we do not find any evidence of procyclical behaviour of credit extension in South Africa, and the latter should therefore be used with caution and not as a mechanical rule based common reference guide for countercyclical capital buffers for financial institutions. | |
| Publisher | AOSIS Publishing | |
| Date | 2016-11-25 | |
| Identifier | 10.4102/sajems.v19i4.1244 | |
| Source | South African Journal of Economic and Management Sciences; Vol 19, No 4 (2016); 467-478 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/1244/637
https://sajems.org/index.php/sajems/article/downloadSuppFile/1244/458
https://sajems.org/index.php/sajems/article/downloadSuppFile/1244/459
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