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Macroeconomic Determinants of Financial Stability in a Business Cycle: Evidence from India
Gaurav Singh Chauhan,K. Ramesha +1 more
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In this article, the authors investigated the relationship between financial stability and a set of macroeconomic determinants pertaining to a full business cycle in India and found that the key determinants of banking and financial stability are rate of growth in credit, rate of growing in stock-market index and short-term interest rates apart from select sectoral GDP growth rates.Abstract:
One of the important lessons from the crisis in the last decade relates to the realignment of the policies in explicit pursuit of macroeconomic and financial stability. Macro-prudential regulation with the larger objective of enhancing the resilience of financial system, calls for a comprehensive understanding of the interplay between macroeconomic factors to counter the buildup of imbalances within the financial system. This paper is an attempt to investigate into the relationship between financial stability and a set of macroeconomic determinants pertaining to a full business cycle in India. We have analyzed the macroeconomic determinants of financial stability from two perspectives, i.e., banking stability in terms of NPA ratio and financial stability in terms of credit extension. Our results show that the key determinants of banking and financial stability are rate of growth in credit, rate of growth in stock-market index and short-term interest rates apart from select sectoral GDP growth rates.read more
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Sovereign Credit Ratings Analysis Using the Logistic Regression Model
TL;DR: In this article , an empirical analysis of sovereign credit ratings (SCR) in South Africa using Logistic Regression (LR) to identify their determinants and forecast SCRs is presented.
Effect of Financial Instability on Economic Growth: Evidence from Selected East and Southern African Countries
TL;DR: In this article , the authors examined the effect of financial instability on economic growth in Eastern and Southern African countries using Dynamic Panel-Auto Regressive Distributed Lag model, and sample 11 countries for the of period 1995-2019.
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The impact of Government budget on national financial security: a case study in Vietnam
TL;DR: In this article , the authors examined the effect of the budget balance on national financial security in the linkage of macroeconomic variables by using the VAR model approach from 1995 to 2020 in Vietnam and found that budget balance has a positive effect in the short term and explains about 2.04% of Vietnam's financial security index.
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