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Financial Stability Indicators – the Case of Croatia

Author

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  • Mirna Dumičić

    (The Croatian National Bank, Croatia)

Abstract

This paper considers financial stability through the processes of the accumulation and materialisation of systemic risks. To this purpose, the method of principal component analysis on the example of Croatia has been used to construct two composite indicators – a systemic risk accumulation index and an index reflecting the consequences of systemic risk materialisation. In the construction of the indices, the features and risks specific to small open economies were considered. Such an approach to systemic risk analysis facilitates the monitoring and understanding of the degree of financial stability and communication of macroprudential policy makers with the public.

Suggested Citation

  • Mirna Dumičić, 2015. "Financial Stability Indicators – the Case of Croatia," Working Papers 43, The Croatian National Bank, Croatia.
    • Handle: RePEc:hnb:wpaper:43
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    File URL: http://www.hnb.hr/repec/hnb/wpaper/pdf/w-043.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    financial stability; systemic risks; financial system resilience; principal component analysis; Croatia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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