An Empirical Investigation of Oil-Macro-Financial Linkages in Saudi Arabia
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Summary:
Oil-macro-financial linkages in Saudi Arabia are analyzed by applying panel econometric frameworks (multivariate and vector autoregression) to maceoeconomic and bank-level balance sheet data for 9 banks spanning 1999–2014. Lower growth of oil prices and non-oil private sector output leads to slower credit and deposit growth and higher nonperforming loan ratios, with feedback loops within bank balance sheets which in turn dampens economic activity. U.S. interest rates are not found to be a key determinant.
Series:
Working Paper No. 2016/022
Subject:
Banking Credit Financial institutions Financial statements Money Nonperforming loans Oil prices Prices Public financial management (PFM) Stocks
English
Publication Date:
February 12, 2016
ISBN/ISSN:
9781498330329/1018-5941
Stock No:
WPIEA2016022
Pages:
23
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