Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
5-1-2018
Abstract
The Basel III Countercyclical Capital Buffer framework has been designed to increase the resilience of the banking sector in periods of upturns in the financial cycle. The main idea is to control banking systems procycical properties which reiterates amplifies risk perception during both in times of distress and buoyant economic activity. Moreover, create a buffer to serve as a shock absorber during downturns. Basel Committee on Banking Supervision’s this regulatory standard built itself on five principles where two of them is related to the estimation of financial cycle. In addition, according to this estimated cycle, a regulatory rule is to be introduced. This study describes the estimation of financial cycle to determine counter cyclical capital buffer for Turkey and tries to build on this methodology by proposing an alternative financial condition index.
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
20
Issue
1
Recommended Citation
SAKARYA, Burçhan and YAYLA, Münür, "An Estimation of Financial Cycle to Determine Counter Cyclical Capital Buffer1". Topics in Middle Eastern and North African Economies, electronic journal, 20, 1, Middle East Economic Association and Loyola University Chicago, 2018, http://www.luc.edu/orgs/meea/
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Copyright Statement
© 2018 The Authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.