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Quality of Financial Policies and Financial System Stress

Author

Listed:
  • Mr. Udaibir S Das
  • Mr. Plamen Yossifov
  • Richard Podpiera
  • Mr. Dmitriy L Rozhkov

Abstract

In this paper, we develop multi-country indices of financial system stress and quality of financial policies and use them in regression analysis of the determinants of financial stress. We find that countries with higher quality of financial policies are better able to contain the effects of macroeconomic pressures on the overall level of stress in the financial system. They are also in a better position to ensure sustainable development of the financial system.

Suggested Citation

  • Mr. Udaibir S Das & Mr. Plamen Yossifov & Richard Podpiera & Mr. Dmitriy L Rozhkov, 2005. "Quality of Financial Policies and Financial System Stress," IMF Working Papers 2005/173, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/173
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    References listed on IDEAS

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    1. Mr. Bennett W Sutton & Mr. Luis Catão, 2002. "Sovereign Defaults: The Role of Volatility," IMF Working Papers 2002/149, International Monetary Fund.
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    1. Ayadi, Rym & Naceur, Sami Ben & Casu, Barbara & Quinn, Barry, 2016. "Does Basel compliance matter for bank performance?," Journal of Financial Stability, Elsevier, vol. 23(C), pages 15-32.
    2. Demirgüç-Kunt, AslI & Detragiache, Enrica & Tressel, Thierry, 2008. "Banking on the principles: Compliance with Basel Core Principles and bank soundness," Journal of Financial Intermediation, Elsevier, vol. 17(4), pages 511-542, October.
    3. Zongrun Wang & Jiangyan Chen & Xiaofei Zhao, 2020. "Risk Information Disclosure and Bank Soundness: Does Regulation Matter? Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 20(4), pages 973-981, December.
    4. Shajari , Parastoo & Shajari , Houshang, 2012. "Financial Soundness Indicators with Emphasis on Non-performing Loans in Iran's Banking System," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 6(3), pages 163-189, April.
    5. Shahchera , Mahshid & Jouzdani , Nasim, 2012. "The Impact of Regulation on Soundness of Banking: A Panel Data Approach," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 6(2), pages 191-209, December.
    6. Bilin Neyapti, 2010. "Macroeconomic Institutions and Development," Books, Edward Elgar Publishing, number 12960.
    7. Demirgüç-Kunt, Asli & Detragiache, Enrica, 2011. "Basel Core Principles and bank soundness: Does compliance matter?," Journal of Financial Stability, Elsevier, vol. 7(4), pages 179-190, December.
    8. Klomp, Jeroen & Haan, Jakob de, 2012. "Banking risk and regulation: Does one size fit all?," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3197-3212.
    9. Jeroen Klomp & Jacob de Haan, 2010. "Banking risk and regulation: Does one size fit all?," CPB Discussion Paper 164, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Mr. Rupert D Worrell & Andrea M. Maechler & Ms. Srobona Mitra, 2007. "Decomposing Financial Risks and Vulnerabilities in Eastern Europe," IMF Working Papers 2007/248, International Monetary Fund.

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