2 options
Financial Soundness Indicators and the Characteristics of Financial Cycles / Natasha Che, Yoko Shinagawa.
- Format:
- Book
- Government document
- Author/Creator:
- Che, Natasha.
- Series:
- IMF Working Papers; Working Paper ; No. 2014/014
- IMF working paper ; WP/14/14
- IMF Working Papers
- Language:
- English
- Subjects (All):
- Banks and banking--Econometric models.
- Banks and banking.
- Business cycles--Econometric models.
- Business cycles.
- Risk--Econometric models.
- Risk.
- Physical Description:
- 1 online resource (27 p.)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2014.
- Language Note:
- English
- Summary:
- Better “financial soundness” of banks could help mitigate the volatility of financial cycles by reducing banks’ risk exposure. But trying to improve financial soundness in the midst of a downturn can do the opposite—further aggravating the contraction of credit. Consistent with this notion, the paper found that better initial scores in certain financial soundness indicators (FSIs) are associated with milder and shorter downturns; and improving FSIs during a downturn worsens the shrinkage of credit and amplifies the cycle. In this context, our results suggest that policy makers should be mindful about the timing of regulating changes in banks’ FSIs.
- Contents:
- Cover; Contents; I. Introduction; II. Data; A. Data on FSIs; Figures; 1. Development of FSIs for Selected European Countries, 2005-2011; B. Calculating Financial Cycles; III. SRF-FSIs and Credit Growth; 2. Impulse Responses of Credit Growth to Shocks in Growth in Capital-asset Ratio, Liquid-asset Ratio, and Net Open Position-capital Ratio; IV. SRF-FSIs and the Characteristics of Financial Cycles; 3. Amplitude, Duration, and Slope of a Downturn; V. Conclusion; Tables; 1. Summary Statistics of SRF-FSIs; 2. Regression of SRF-FSIs on IMF-FSIs (with country fixed effects)
- 3a. Panel VAR: Credit Growth and Changes in SRF-FSIs During Downturns3b. Panel VAR: Credit Growth and Changes in SRF-FSIs During Upturns; 4. Variance Decomposition for Credit Growth; 5. Summary Statistics of Cycle Properties; 6. Cycle Durations and SRF-FSIs; 7. Cycle Amplitudes and SRF-FSIs; 8. Cycle Slopes and SRF-FSIs; References
- Notes:
- Description based upon print version of record.
- Includes bibliographical references.
- Description based on online resource; title from PDF title page (ebrary, viewed March 7, 2014).
- ISBN:
- 9781484387153
- 1484387155
- 9781484386958
- 1484386957
- 9781484387245
- 1484387244
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.