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| In [[business cycle]] theory and finance, any economic quantity that is positively correlated with the overall state of the economy. | | In relation to credit ratings, a credit rating requested by - and generally paid for by - the issuer of the obligation being rated. |
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| Any quantity that tends to increase when the overall economy is growing.
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| =====Bank supervision=====
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| The performance of banks tends to be procyclical. They thrive when the economy is strong, and suffer disproportionately when the general economy is weak.
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| This is a problem, because it can amplify financial instability.
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| Basel III seeks to address the problem of the procyclicality of the largest banks' capital, by requiring them to hold countercyclical capital buffers.
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| The opposite of procyclical is ''countercyclical''.
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| == See also == | | == See also == |
| * [[Countercyclical]] | | * [[Credit rating]] |
| * [[Cyclical]] | | * [[Unsolicited rating]] |
| * [[Procyclicality]]
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| * [[Prudential]]
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| * [[Total Loss Absorbing Capacity]]
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| [[Category:The_business_context]]
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| [[Category:Manage_risks]]
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Revision as of 14:20, 23 October 2012
In relation to credit ratings, a credit rating requested by - and generally paid for by - the issuer of the obligation being rated.
See also
