## Quality of Financial Policies and Financial System Stress

_IMF Working Papers, September 1, 2005_

## Source details

**Canonical URL:** [Quality of Financial Policies and Financial System Stress](https://www.imf.org/en/publications/wp/issues/2016/12/31/quality-of-financial-policies-and-financial-system-stress-18421)

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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

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### 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.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/quality-of-financial-policies-and-financial-system-stress-18421_