Quality of Financial Policies and Financial System Stress
IMF Working Papers, September 1, 2005
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- Quality of Financial Policies and Financial System Stress
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Bibliographic details
- Authors: Udaibir S Das, Plamen Yossifov, Richard Podpiera, Dmitriy L Rozhkov
- Published: September 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451861921.001
Summary
- The paper develops multi-country indices of financial system stress and quality of financial policies and uses them in regression analysis of the determinants of financial stress.
- Main finding: 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 and are in a better position to ensure sustainable development of the financial system.
Methodology and Scope
- Constructed multi-country indices:
- Financial system stress indices
- Quality of financial policies indices
- Applied regression analysis to investigate determinants of financial stress across countries.
Key Findings
- Higher quality of financial policies mitigates transmission of macroeconomic pressures to overall financial system stress.
- Higher policy-quality countries are better positioned for sustainable development of the financial system.