http://hdl.handle.net/10500/4082 2013-05-14T08:19:27Z 2013-05-14T08:19:27Z Akinboade, Oludele Akinloye Makina, Daniel http://hdl.handle.net/10500/4203 2012-08-03T08:47:02Z 2009-01-01T00:00:00Z

Banking lending business cycles : South African evidence Akinboade, Oludele Akinloye; Makina, Daniel The paper provides empirical analysis on the linkage between the behavior of bank lending and business cycles in South Africa. Consistent with theory, overall evidence suggesting pro-cyclicality of bank lending is uncovered both at macro and micro levels. At macro level, bank lending and lending rates have moved in tandem with business cycles. Real borrowing by government was counter-cyclical to business cycles as would be expected if the role of government was to fine-tune the economy during booms and recessions. At micro level, bank lending to households and firms was generally pro-cyclical. Even the growth of provisioning by banks has been largely pro-cyclical to business cycles, though exceptions were recorded. First, newmortgage lending exhibited counter-cyclical behavior before 1993. We attributed this behavior to the political and economic climate prevailing then which created uncertainties that made ownership of property a good hedge against economic and political risks. Secondly, the growth of real credit for investment and of foreign trade finance does not appear to have been related to business cycles.

2009-01-01T00:00:00Z Oludele Akinloye, Akinboade Daniel, Makina http://hdl.handle.net/10500/4191 2012-08-03T09:06:51Z 2009-01-01T00:00:00Z

Bank lending and business cycles : South African evidence Oludele Akinloye, Akinboade; Daniel, Makina The paper provides empirical analysis on the linkage between the behavior of bank lending and business cycles in South Africa. Consistent with theory, overall evidence suggesting pro-cyclicality of bank lending is uncovered both at macro and micro levels. At macro level, bank lending and lending rates have moved in tandem with business cycles. Real borrowing by government was counter-cyclical to business cycles as would be expected if the role of government was to fine-tune the economy during booms and recessions. At micro level, bank lending to households and firms was generally pro-cyclical. Even the growth of provisioning by banks has been largely pro-cyclical to business cycles, though exceptions were recorded. First, newmortgage lending exhibited counter-cyclical behavior before 1993. We attributed this behavior to the political and economic climate prevailing then which created uncertainties that made ownership of property a good hedge against economic and political risks. Secondly, the growth of real credit for investment and of foreign trade finance does not appear to have been related to business cycles. Research article

2009-01-01T00:00:00Z