{
  "title": "What Matters for Financial Development and Stability?",
  "publication": "IMF Working Papers, July 24, 2015",
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  "summary": "This study aims to identify policies that influence the development of financial institutions as measured across three dimensions: depth, efficiency, and stability.",
  "sections": [
    {
      "heading": "Study objective and framework",
      "content": "- This study aims to identify policies that influence the development of financial institutions as measured across three dimensions: depth, efficiency, and stability.\n- Applies the concept of the financial possibility frontier, developed by Beck & Feyen (2013) and formalized by Barajas et al (2013a), to determine key policy variables affecting the gap between actual levels of development and benchmarks predicted by structural variables.\n- Uses dynamic panel estimation to assess policy effects."
    },
    {
      "heading": "Key empirical findings",
      "content": "- Our dynamic panel estimation shows that inflation, trade openness, institutional quality, and banking crises significantly affect financial development.\n- The analysis identifies potential complementarities and trade-offs for policy makers, based on the effect of the policy variables across the different dimensions of financial development."
    },
    {
      "heading": "Policy implications and analytical contributions",
      "content": "- Highlights policy variables that matter for financial institution development across three dimensions: depth, efficiency, and stability.\n- Provides evidence on complementarities and trade-offs policymakers should consider when designing policies affecting financial development.\n- Employs the financial possibility frontier concept to separate structural benchmarks from policy-responsive gaps in financial development."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Banking crises, Commercial banks, Econometric analysis, Estimation techniques, Financial crises, Financial institutions, Financial markets, Financial sector development, Population and demographics\n- Keywords: Banking crises, banking sector, Commercial banks, d GMM, difference GMM estimator, Estimation techniques, financial development, financial possibility frontier, Financial sector development, financial stability, Global, real GDP, s GMM, standard deviation, system GMM estimation, system GMM estimator, WP\n\n---\n\n Content in this bundle\n\n- Wp15173\n  - Wp15173 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp15173 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/what-matters-for-financial-development-and-stability-43124"
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    "Authors: Raja Almarzoqi, Akshay Kotak",
    "Published: July 24, 2015",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513501178.001",
    "This study aims to identify policies that influence the development of financial institutions as measured across three dimensions: depth, efficiency, and stability.",
    "Applies the concept of the financial possibility frontier, developed by Beck & Feyen (2013) and formalized by Barajas et al (2013a), to determine key policy variables affecting the gap between actual levels of development and benchmarks predicted by structural variables.",
    "Uses dynamic panel estimation to assess policy effects.",
    "Our dynamic panel estimation shows that inflation, trade openness, institutional quality, and banking crises significantly affect financial development.",
    "The analysis identifies potential complementarities and trade-offs for policy makers, based on the effect of the policy variables across the different dimensions of financial development.",
    "Highlights policy variables that matter for financial institution development across three dimensions: depth, efficiency, and stability.",
    "Provides evidence on complementarities and trade-offs policymakers should consider when designing policies affecting financial development.",
    "Employs the financial possibility frontier concept to separate structural benchmarks from policy-responsive gaps in financial development.",
    "Subject: Banking crises, Commercial banks, Econometric analysis, Estimation techniques, Financial crises, Financial institutions, Financial markets, Financial sector development, Population and demographics",
    "Keywords: Banking crises, banking sector, Commercial banks, d GMM, difference GMM estimator, Estimation techniques, financial development, financial possibility frontier, Financial sector development, financial stability, Global, real GDP, s GMM, standard deviation, system GMM estimation, system GMM estimator, WP",
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