| Description |
1 online resource (39 pages) |
| Series |
IMF Working Papers, 2227-8885 ; Working Paper No. 13/160 |
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IMF Working Papers ; Working Paper no. 13/160
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| Contents |
Cover; Contents; I. Introduction; II. Literature Review; III. Banking Sector Developments and Regulations; A. Egypt; B. Jordan; C. Lebanon; D. Morocco; E. Tunisia; IV. Methodology; V. Empirical evidence and analysis; VI. Conclusion; References; Tables; Table 1: Variable Definitions and Sources; Table 2: Sample Period and Number of Observations per country; Table 3: Descriptive Statistics; Table 4: The Effects of Capital Adequacy Adoption on Bank's Real Total Asset; Table 5: The Effects of Capital Adequacy Adoption on Bank's Equity |
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Table 6: The Effects of Capital Adequacy Adoption on Bank's Government SecuritiesTable 7: The Effects of Capital Adequacy Adoption on Bank's Net Loans Ratio (Berger et Udell, 1994 approach); Table 8: The Effects of Capital Adequacy Adoption on Bank's Real Growth of Net Loans (Chiuri et al., 2002 approach); Table 9: The Effects of Capital Adequacy Adoption on Bank's Behaviour: Discrimination by the Nationality of the Bank; Table 10: The Effects of Capital Adequacy Adoption on Bank's Behaviour: Discrimination by the Status of Quotation |
| Summary |
The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this requirement may have caused a "credit crunch," a significant reduction in the supply of credit. We investigate the direct link between the implementation of the Basel I Accord and lending activities, using a data set spanning annual observations covering 1989-2004 for banks in Egypt, Jordan, Lebanon, Morocco, and Tunisia. The results provide clear support for a significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital adequacy ratios, banks expanded credit and asset growth. Credit growth appears to be driven by demand fluctuations attributed to real growth, cost of borrowing, and exchange rate risk. Overall, the effects of macroeconomic variables, in contrast to capital adequacy, appear to be more dominant in determining credit growth, regardless of the capital adequacy ratio, and regardless of variation across banks by nationality, ownership, and listing |
| Notes |
Available in PDF, ePUB, and Mobi formats on the Internet |
| Subject |
Bank capital -- Middle East
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Bank capital -- Africa, North
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Credit -- Middle East
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Credit -- Africa, North
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Bank capital
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Credit
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North Africa
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Middle East
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| Form |
Electronic book
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| Author |
Kandil, Magda E
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Ben Naceur, Sami
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International Monetary Fund
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| ISBN |
1475559941 |
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9781475559941 |
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