{
  "title": "The Real Effects of Financial Sector Risk",
  "publication": "IMF Working Papers, September 1, 2009",
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  "summary": "This paper estimates the magnitude of key effects on the real economy from financial sector stress. We focus on the short-run feedback effect from market-based indicators of financial sector risk to the real economy through the credit channel, and estimate this effect on an economy-wide (macro) leve",
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    {
      "heading": "Summary and main findings",
      "content": "- The paper estimates the magnitude of key effects on the real economy from financial sector stress.\n- Focus is on the short-run feedback effect from market-based indicators of financial sector risk to the real economy through the credit channel.\n- Estimates are produced at two levels:\n  - Economy-wide (macro) level.\n  - Individual large banks.\n- Both sets of estimates yield significant feedback effects of substantial magnitude.\n- The estimates are consistent with other work in this area."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Prudential supervision could be enhanced by taking into account the feedback effects of financial instability on the real economy.\n- Proposes a way to integrate feedback effects into stress tests to:\n  - Improve realism of macroeconomic stress scenarios.\n  - Improve accuracy of macroeconomic stress scenarios.\n- Proposes a metric to interpret stress testing results."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Bank credit, Banking, Credit, Financial sector, Financial sector risk\n- Keywords: bank, credit growth, GDP, WP\n\n---\n\n Content in this bundle\n\n- wp09198\n  - wp09198 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09198 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-real-effects-of-financial-sector-risk-23275"
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    "Authors: Andrea M. Maechler, Alexander F. Tieman",
    "Published: September 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873450.001",
    "The paper estimates the magnitude of key effects on the real economy from financial sector stress.",
    "Focus is on the short-run feedback effect from market-based indicators of financial sector risk to the real economy through the credit channel.",
    "Estimates are produced at two levels:",
    "Both sets of estimates yield significant feedback effects of substantial magnitude.",
    "The estimates are consistent with other work in this area.",
    "Prudential supervision could be enhanced by taking into account the feedback effects of financial instability on the real economy.",
    "Proposes a way to integrate feedback effects into stress tests to:",
    "Proposes a metric to interpret stress testing results.",
    "Subject: Bank credit, Banking, Credit, Financial sector, Financial sector risk",
    "Keywords: bank, credit growth, GDP, WP",
    "**_wp09198**"
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