The Impact of Oil Prices on the Banking System in the GCC

Padamja Khandelwal, Ken Miyajima and Andre Santos

No 2016/161, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; NPL ratio; oil price; price growth; GCC bank; Macro-financial linkages; nonperforming loans; panel vector autoregression; asset price appreciation; bank asset quality; Oil prices; Credit; Financial cycles; Capital adequacy requirements; Global (search for similar items in EconPapers)
Pages: 23
Date: 2016-08-05
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Citations: View citations in EconPapers (39)

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