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

Borradores de Economia
Número: 
650
Publicado: 
Clasificación JEL: 
C26, G21, G28
Palabras clave: 
Bank capital buffers, Credit risk, Regulation, Colombia

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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