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Bikker, J., Metzemakers, P. Is Bank Capital Procyclical? A Cross-Country Analysis. Credit and Capital Markets – Kredit und Kapital, 40(2), 225-264.
Bikker, Jacob A. and Metzemakers, Paul A. J. "Is Bank Capital Procyclical? A Cross-Country Analysis" Credit and Capital Markets – Kredit und Kapital 40.2, 2007, 225-264.
Bikker, Jacob A./Metzemakers, Paul A. J. (2007): Is Bank Capital Procyclical? A Cross-Country Analysis, in: Credit and Capital Markets – Kredit und Kapital, vol. 40, iss. 2, 225-264, [online]


Is Bank Capital Procyclical? A Cross-Country Analysis

Bikker, Jacob A. | Metzemakers, Paul A. J.

Credit and Capital Markets – Kredit und Kapital, Vol. 40 (2007), Iss. 2 : pp. 225–264

2 Citations (CrossRef)

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Jacob A. Bikker, Amsterdam

Paul A. J. Metzemakers, Amsterdam

Cited By

  1. The Cyclical Behaviour of Bank Capital Buffers: An Empirical Evidence for MENA Banking Systems

    Saadaoui, Zied

    Review of Middle East Economics and Finance, Vol. 11 (2015), Iss. 2 [Citations: 4]


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This article investigates the determinants of commercial banks' own internal capital targets and potential sensitivity of these levels to the business cycle. Worldwide results make clear that banks' own risk is only slightly dependent on the business cycle. Banks tend to hold substantial capital buffers on top of minimum requirements, reflecting that they hold capital for other reasons than strictly meeting the capital requirements. These results suggest that actual capital levels may not become substantially more procyclical under the new risk-sensitive Basel II regime. However, a number of banks, especially smaller ones, combine a relatively risky portfolio with limited buffer capital. A more risk-sensitive capital regulation regime could force these banks to obtain higher capital levels, which would make them more procyclical. (JEL E32, G21, G28, G31)