We examine the association of the business cycle and revenue diversification with the banks’ capital buffer and credit risk for a sample of banks from the Association of Southeast Asian Nations (ASEAN) region from 1998 to 2018, using 2847 banking firm–year observations. We find that ASEAN region banks react anticyclically in adjusting their capital buffer levels and credit risk. We find revenue diversification benefits and that banks, through revenue diversification, can reduce their credit risk while achieving capital savings when confronting economic downturns. Our results offer support for the Basel III accord. However, the relations revealed are somewhat moderated by the regulatory quality, competition, and phase of the business cycle encountered by ASEAN region banks.

我们使用2847年对银行业的年度观察，研究了东南亚国家联盟（ASEAN）地区1998年至2018年样本银行的商业周期和收入多元化与银行的资本缓冲和信用风险之间的关系。我们发现，东盟地区银行在调整其资本缓冲水平和信贷风险方面具有反周期性。我们发现收入多样化的好处，而银行通过收入多样化可以在面对经济低迷的同时降低信贷风险，同时实现资本节省。我们的结果为《巴塞尔协议III》提供了支持。然而，东盟地区银行所遇到的监管质量，竞争和商业周期的阶段在一定程度上缓和了所揭示的关系。