IDEAS home Printed from https://ideas.repec.org/a/tcb/cebare/v20y2020i2p43-52.html

A financial stress index for a highly dollarized developing country : The case of Lebanon

Author

Listed:
  • Layal MansourIshrakieh
  • Leila Dagher
  • Sadika El Hariri

Abstract

The aim of this paper is to construct the first comprehensive Financial Stress Index for Lebanon, dubbed the IFEFSI (Institute of Financial Economics Financial Stress Index). This is a broad coincident composite index that includes three different market segments; the banking sector, the equities market, and the foreign exchange and other markets. It is constructed as a continuous real-time measure that quantifies the level of systemic stress by measuring latent conditions. As a metric for financial conditions, the IFEFSI should provide valuable information to macroprudential regulators whose aim is to maintain a smooth and resilient financial system. By using it as a tool to help monitor, identify, and address any potential crisis, they are better equipped to maintain financial and economic stability in Lebanon.

Suggested Citation

  • Layal MansourIshrakieh & Leila Dagher & Sadika El Hariri, 2020. "A financial stress index for a highly dollarized developing country : The case of Lebanon," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 20(2), pages 43-52.
    • Handle: RePEc:tcb:cebare:v:20:y:2020:i:2:p:43-52
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S1303070120300044
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:pra:mprapa:99376 is not listed on IDEAS
    2. Hoque, Mohammad Enamul & Soo-Wah, Low & Tiwari, Aviral Kumar & Akhter, Tahmina, 2023. "Time and frequency domain connectedness and spillover among categorical and regional financial stress, gold and bitcoin market," Resources Policy, Elsevier, vol. 85(PA).
    3. Fadoua Joudar & Omar El Ghmari, 2025. "The Impact of Financial Inclusion on Financial Stability: Evidence from MENA and African Countries Analyzed Using Hierarchical Multiple Regression," Economies, MDPI, vol. 13(5), pages 1-20, April.
    4. Hong, Yanran & Li, Pan & Wang, Lu & Zhang, Yaojie, 2023. "New evidence of extreme risk transmission between financial stress and international crude oil markets," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. Balcilar, Mehmet & Elsayed, Ahmed H. & Hammoudeh, Shawkat, 2023. "Financial connectedness and risk transmission among MENA countries: Evidence from connectedness network and clustering analysis1," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 82(C).
    6. Rezvan Pourmansouri & MirFeiz Fallahshams & Reza Ghafari Gol Afshani, 2025. "Designing a Financial Stress Index Based on the GHARCH-DCC Approach and Machine Learning Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 2689-2718, March.
    7. Ghosh, Indranil & Jana, Rabin K. & David, Roubaud & Grebinevych, Oksana & Wanke, Peter & Tan, Yong, 2024. "Modelling financial stress during the COVID-19 pandemic: Prediction and deeper insights," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 680-698.
    8. Tran, Thuy Nhung, 2022. "The Volatility of the Stock Market and Financial Cycle: GARCH Family Models," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 151-168.
    9. Dagher, Leila & Hasanov, Fakhri J., 2023. "Oil market shocks and financial instability in Asian countries," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 182-195.
    10. Bu, Ya & Du, Xin & Li, Hui & Yu, Xinghui & Wang, Yuting, 2023. "Research on the FinTech risk early warning based on the MS-VAR model: An empirical analysis in China," Global Finance Journal, Elsevier, vol. 58(C).
    11. Armah, Mohammed & Amewu, Godfred, 2024. "Quantile dependence and asymmetric connectedness between global financial market stress and REIT returns: Evidence from the COVID-19 pandemic," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).
    12. Hoque, Mohammad Enamul & Billah, Mabruk & Kapar, Burcu & Naeem, Muhammad Abubakr, 2024. "Quantifying the volatility spillover dynamics between financial stress and US financial sectors: Evidence from QVAR connectedness," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    13. Jabbour, George M. & Mansour-Ichrakieh, Layal, 2025. "“Dollarization vs. bitcoinization in Türkiye: Which is more dangerous for the financial market?”," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 100(C).
    14. Layal Mansour-Ichrakieh, 2021. "The Impact of Israeli and Saudi Arabian Geopolitical Risks on the Lebanese Financial Market," JRFM, MDPI, vol. 14(3), pages 1-24, February.
    15. Haddou, Samira, 2022. "International financial stress spillovers to bank lending: Do internal characteristics matter?," International Review of Financial Analysis, Elsevier, vol. 83(C).
    16. Rui Dong & Jinzhao Song & Tao Jiang & Muhammad Awais Baloch, 2025. "Environmental Sustainability Across BRICS Economies: the Dynamics Among the Digital Economy, Education, and CO2 Emissions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4125-4145, March.
    17. Jun Fan & Lijuan Peng & Tinggui Chen & Guodong Cong, 2024. "The role of social impact on consumer attitudes toward green and healthy home appliances during the COVID-19 pandemic," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28063-28105, November.
    18. Darjana Darjana & Sudarso Kaderi Wiyono & Deddy Priatmodjo Koesrindartoto, 2025. "Research on the impact of COVID-19 on the financial system: Evidence from Indonesia," PLOS ONE, Public Library of Science, vol. 20(2), pages 1-26, February.
    19. Pradeep Kumar & Sanjeev Gupta & Vishal Dagar, 2024. "Sustainable energy development through non‐residential rooftop solar photovoltaic adoption: Empirical evidence from India," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 795-814, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tcb:cebare:v:20:y:2020:i:2:p:43-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge or the person in charge or the person in charge or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tcmgvtr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.