Financial Stability Considerations for Slovakia in the Context of ECB Monetary Stance

Šlahor, Ľudomír; Rychtárik, Štefan; Bandúr, Matúš

doi:10.1016/s2212-5671(15)01331-3

Cited by 2 publications

(2 citation statements)

References 9 publications

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“…It thus shows that interest rate changes might affect different types of financial cycles in an asynchronous way. We can support the conclusion of Slahor et al (2015) that due to a lack of financial cycle synchronisation in the euro area countries, macroprudential policy on a national level might have to also deal with the side effects of a common monetary policy.…”

Section: Interactions Between Price and Financial Stabilitysupporting

confidence: 67%

Are interest rate changes comoving with financial cycle?

Smaga

2021

AOecon

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We explore to what extent official interest rate changes can potentially in a procyclical manner impact different financial cycle indicators (credit/GDP, debt service ratio, house prices and stock market indices). We test this on data covering 1995−2016 in 21 countries and the euro area using the Concordance index and Monetary policy procyclicality ratio. Results show that this was not a widespread phenomenon, but there was significant heterogenenity across countries. The procyclicality of interest rate changes was usually higher when financial cycle gaps were increasing and lower when they were decreasing. On average, central banks in several larger economies were running potentially less procyclical monetary policy than those in the smaller ones. The resulting propensity of conflicts between achieving price and financial stability by central banks was low, as only in 10% of the cases the objectives were conflicting (usually when inflation was below the target and the credit cycle was in an expansion phase).

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Section: Interactions Between Price and Financial Stabilitysupporting

confidence: 67%

Are interest rate changes comoving with financial cycle?

Smaga

2021

AOecon

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“…If banking can minimize these risks, we will be able to maintain bank stability, thus affecting the financial system's stability and ultimately making it more resilient. The same thing was said in the study of Laeven, Ratnovski, and Tong, (2016), Barrel, Davis, Fic, andKarim (2010), andŠlahor, Rychtárik, andBandúr (2015).…”

Section: Discussionsupporting

confidence: 55%

Does Macroprudential Policy Matter For Financial Resilience In Indonesia?

Zainuri

2022

JICP

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Financial Stability Considerations for Slovakia in the Context of ECB Monetary Stance

Cited by 2 publications

References 9 publications

Are interest rate changes comoving with financial cycle?

Are interest rate changes comoving with financial cycle?

Does Macroprudential Policy Matter For Financial Resilience In Indonesia?

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