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Chapter 3 Methodology ......................................... 36
3.1 Researcher Models ............................... 36
3.2 Financial analysis .............................. 39
Chapter 4 CAMELS Approach ..................................... 47
4.1 Introduction .......................................... 47
4.2 Results .................. 48
Chapter 5 Countercyclical Buffer .................................... 56
5.1 Introduction ............................. 56
5.2 Data and methodology .................................. 60
Chapter 5 Countercyclical Buffer
5.1 Introduction
In this chapter, we will investigate the new concept introduced by Basel III that the countercyclical buffer, whether if it is appropriate for Palestine economy or not? To answer this question, first, we have to develop the recent model A-IRB for Palestine case. Then use the countercyclical buffer formals.
In socioeconomics context, the banks are playing a very significant role since banking sector is considered one of the main element to strengthening confidence in the state's policies and caring for the economic interests. There is an ever developing literature on the pro-cyclical impact of banking arrangement. For instance, Basel II agreement, applied in 2007, has support discussion on the cyclicality of regulation and the probability that regulation increases business cycles[33, 136].
The financial crisis in 2008 was barely the first in history [9, 20, 33]. For this reason, the Basel Committee on Banking Supervision (BCBS) revised the regulatory framework in Basel III[45, 61]. The International Monetary Fund (IMF), the Bank for International Settlements (BIS), and the Group of Twenty (G-20) supported this method and made an instruction proposal on the 20 July 2011. Moreover, then they provide a probable legal framework for the states that follows Basel III[9, 27, 61, 143]. The outline should be comprehensive at the latest in 2018[29, 144, 145]. The resolution that the committee suggests is dual: a capital preservation buffer which can be accessible to under certain conditions and the outline of a ?countercyclical buffer? [36, 45]. The latter proposes to guarantee that banking sector capital requirements take account of the macro-financial atmosphere in which banks function” [61, 71].
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Chapter 6 Discussion
6.1 Introductio
In this chapter, this research discusses the results it obtained on the stepwise analysis. Basel introduced new concepts and made more flexibility to every nation jurisdiction to determine the suitable approach according to its economy (BCBS, 2010) [50, 77].
This research proposes a framework for PBS to apply Basel III. Therefore, this research investigates the real state of PBS through different methods. This research used primary and secondary data, and then uses plenty of financial, statistic and econometrics analysis. More details show subsequent.
Structural equation mod
