Quality of Financial Policies and Financial System Stress

ByUdaibir S Das, Plamen Yossifov, Richard Podpiera, Dmitriy L Rozhkov

September 1, 2005

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Commercial banks, Currency markets, Economic sectors, Financial crises, Financial institutions, Financial markets, Financial sector, Stock markets

Keywords: Commercial banks, Currency markets, Financial crises, financial crises literature, financial policies, Financial sector, financial stress, financial system, financial system disruption, financial system stress, Global, Stock markets, stress indices, U.S. dollar, WP

Pages:
49
Volume:
2005
DOI:
https://doi.org/10.5089/9781451861921.001
Issue:
173
Series:
Working Paper No. 2005/173
Stock No:
WPIEA2005173
ISBN:
9781451861921
ISSN:
1018-5941

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