Article

Major British Bank performance over the Business cycle

Details

Citation

Jaffar K, Webb R & Kumbirai M (2012) Major British Bank performance over the Business cycle. International Journal of Economic Sciences, 1 (2), pp. 26-50. http://www.iises.net/?p=8091

Abstract
This paper investigates the effect of macroeconomic changes particularly the cyclical nature of bank performance using the dataset of Large British Banks over the period 2004-2011. Financial ratios are employed to investigate whether loan loss provision, lending rate, income level and return on asset show a cyclical pattern. The study found a cyclical pattern before, during and after financial crisis 2008. The results show falling asset prices, high capital requirement, reduce lending and loss in bank balance sheet in the British banking sector. Therefore, for macro and financial stability, it is important to understand that to what extend banks are affected by the macro-economy.

Journal
International Journal of Economic Sciences: Volume 1, Issue 2

StatusPublished
FundersGlasgow Caledonian University
Publication date20/09/2012
URLhttp://hdl.handle.net/1893/30657
Publisher URLhttp://www.iises.net/?p=8091
ISSN1804-9796
eISSN1804-9796

People (1)

People

Professor Robert Webb
Professor Robert Webb

Professor of Banking and Appl. Economics, Accounting & Finance