The Cyclical Behavior of Bank Capital Buffers in an Emerging Economy: Size Does Matter

Number: 
650
Published: 
Classification JEL: 
C26, G21, G28

Using a panel of Colombian banks and quarterly data between 1996:1 and 2010:3, we study the relationship between short-run adjustments in bank capital buffers and the business cycle. We follow a partial adjustment framework and control for several variabl