{"title":"Best Option for Countercyclical Capital Buffer Implementation - Scenarios for Baltic States","authors":"\u0122irts Brasli\u0146\u0161, Ilja Arefjevs, Nade\u017eda Tarakanova","volume":100,"journal":"International Journal of Economics and Management Engineering","pagesStart":1185,"pagesEnd":1192,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/10001047","abstract":"
The objective of countercyclical capital buffer is to
\r\nencourage banks to build up buffers in good times that can be drawn
\r\ndown in bad times. The aim of the report is to assess such decisions
\r\nby banks derived from three approaches. The approaches are the
\r\naggregate credit-to-GDP ratio, credit growth as well as banking
\r\nsector profits. The approaches are implemented for Estonia, Latvia
\r\nand Lithuania for the time period 2000-2012. The report compares
\r\nthree approaches and analyses their relevance to the Baltic States by
\r\ntesting the correlation between a growth in studied variables and a
\r\ngrowth of corresponding gaps. Methods used in the empirical part of
\r\nthe report are econometric analysis as well as economic analysis,
\r\ndevelopment indicators, relative and absolute indicators and other
\r\nmethods. The research outcome is a cross-Baltic comparison of two
\r\nalternative approaches to establish or release a countercyclical capital
\r\nbuffer by banks and their implications for each Baltic country.<\/p>\r\n","references":"[1] Balin B. J. (2008). Basel I, Basel II, and Emerging Markets: A\r\nNontechnical Analysis. The Johns Hopkins University School of\r\nAdvanced International Studies.\r\n[2] Bank for International Settlements (BIS). (2006). Basel II: International\r\nConvergence of Capital Measurement and Capital Standards: A Revised\r\nFramework. Available at: http:\/\/www.bis.org\r\n[3] Bank for International Settlements (BIS). (2010), 80th Annual Report,\r\nBasel. Available at: http:\/\/www.bis.org\r\n[4] IMF. (2011). World economic outlook. Available at:\r\nhttp:\/\/www.imf.otg.\r\n[5] Kunghehian N. (2012). From Basel II to Basel III, Moody`s analytics.\r\n[6] Moody`s analytics. (2012). Basel III New Capital and Liquidity\r\nStandards \u2013 FAQs.\r\n[7] King P. and Tarbert H. (2011). Basel 3: An Overview. Banking and\r\nFinancial services, Volume, 30.\r\n[8] Basel Committee on Banking Supervision. (2009). Strengthening the\r\nResilience of the Banking Sector, Consultative Document. Available at:\r\nhttp:\/\/www.bis.org\r\n[9] Basel Committee on Banking Supervision. (2010). Countercyclical\r\ncapital buffer proposal. Available at: http:\/\/www.bis.org\r\n[10] Basel Committee on Banking Supervision. (2011). Basel III: A global\r\nregulatory framework for more resilient banks and banking systems.\r\nAvailable at: http:\/\/www.bis.org\r\n[11] Kauko K. (2012). External deficits and non\u2013performing loans in the\r\nrecent financial crisis. Economics Letters 115. 196\u2013199.\r\n[12] Drehmann, M., and Gambacorta L. (2011). The Effects of\r\nCountercyclical Capital Buffers on Bank Lending. Applied Economic\r\nLetters.\r\n[13] Basel Committee on Banking Supervision. (2010). Guidance for\r\nNational Authorities Operating the Countercyclical Capital. Available at:\r\nhttp:\/\/www.bis.org\r\n[14] Drehmann M., Borio C., Gambacorta L., Jim\u00e9nez G., Trucharte C.\r\n(2010). Countercyclical capital buffers: exploring options. BIS Working\r\nPapers No 317.\r\n[15] Borio C. and Drehmann M. (2009). Assessing the Risk of Banking\r\nCrises \u2014 Revisited. BIS Quarterly Review (March). 29\u201346.\r\n[16] Alessi, L., and Detken C. (2011). Quasi Real Time Early Warning\r\nIndicators for Costly Asset Price Boom\/Bust Cycles: A Role for Global\r\nLiquidity. European Journal of Political Economy 27 (3). 520\u201333.\r\n[17] Drehmann M., Borio C. and Tsatsaronis K. (2011). Anchoring\r\nCountercyclical Capital Buffers: The Role of Credit Aggregates.\r\nMonetary and Economic Department, Bank for International\r\nSettlements.\r\n[18] Repullo R., Saurina J., 2011, \u201cThe countercyclical capital buffer of\r\nBasel III. A critical assessment\u201d, Bank of Spain. URL:\r\nftp:\/\/ftp.cemfi.es\/pdf\/papers\/repullo\/Repullo\r\n[19] Trenca I., Dezsi E., Petria N., 2011, \u201cBASEL III: Countercyclical\r\nCapital Buffer proposal \u2013 the case of Romania\u201d","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 100, 2015"}