Macroprudential policy, central banks and financial stability: Evidence from China

Klingelhöfer, Jan; Sun, Rongrong

doi:10.1016/j.jimonfin.2018.12.015

Cited by 64 publications

(44 citation statements)

References 70 publications

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“…19 In addition to the SLF, the central bank has other liquidity injection tools with longer tenors of 3-month, 6-month and 1year, namely the Medium-term Lending Facility (MLF) that was introduced in September 2014. However, a preliminary assessment done in Sun (2018) indicates that the immediate effects of changes in these two central bank lending rates on market interest rates are limited.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

“…Rather, clear communication and transparency are crucial for this system to function well in transmitting policy changes to financial markets (see, e.g., Bernanke and Kuttner 2005;Kuttner 2001). With a target interest rate system, the PBC needs to clearly announce which money market rate it is targeting and its explicit target rate in order to effectively guide markets (Sun 2018).…”

Section: Conclusion and Discussionmentioning

confidence: 99%

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Requiem for the interest rate controls in China

Sun

2020

Pacific Economic Review

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The responsibility for discussion papers lies solely with the individual authors. The views expressed herein do not necessarily represent those of the CFDS. The papers represent preliminary work and are circulated to encourage discussion with the authors. Citation of the discussion papers should account for their provisional character; a revised version may be available directly from the authors. Comments and suggestions on the methods and results presented are welcome.

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Section: Conclusion and Discussionmentioning

confidence: 99%

Section: Conclusion and Discussionmentioning

confidence: 99%

Requiem for the interest rate controls in China

Sun

2020

Pacific Economic Review

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“…So, capital and liquidity must fulfill the requirements of organizations" regulations, such as under Basel III. Thus these regulations help in increasing the bank"s resilience, which is, in turn, absorb shocks, such as oil prices decline (Klingelhöfer & Sun, 2019). It is also reported that low liquidity has a significant and negative effect on bank compliance to rule and regulations that have proposed by Basel III.…”

Section: Literature Reviewmentioning

confidence: 99%

Capital and Liquidity Risks and Financial Stability: Pre, During and Post Financial Crisis Between Islamic and Conventional Banks in GCC Countries, in the Light of Oil Prices Decline

Al-Wesabi¹,

Yusof²

2019

IJFR

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Purpose: The main purpose of this paper is to investigate the impact of capital ratio and liquidity risks and the effects of the Global Financial Crisis (GFC) periods on financial stability of conventional and Islamic banks before, during, and after GFC in the year of 2008 five GCC countries. To examine empirically the comparison between conventional and Islamic banks based on financial stability and soundness, as well as capitalization and liquidity in the light of the adverse effects of GFC and oil prices declining during the period of (2000-2017).Design/methodology/approach: By using time series data, this study employs Pedroni’s panel cointegration analysis to test the long run relationship between financial stability of conventional banks and Islamic banks as a dependent variable and independent variables including financial crisis under three periods; pre (2006-2007), during (2008-2009) and post (2010-2011) crisis. As well as employing Generalized Least Squares (GLS) to examine the effects between independent variables which are GDP, inflation, financial crisis periods, oil prices fluctuations risk, banking competition, financial sector development, liquidity risk and capital adequacy ratio and dependent variable which is financial stability of conventional and Islamic banks in GCC countries before (2000-2006) during (2006-2009) and after (2010-2017) crisis.Findings: The findings of this research suggest that there is a long run relationship between financial stability of conventional and Islamic banks and capital ratios, liquidity risk and other independent variables. As well as study’s findings support some previous studies and it generally concludes that Islamic banks were performed better during the crisis than conventional banks. Whereas Islamic banks were more stable during crisis as their business model helped to limit the adverse effects of crisis in 2008, they were also more capitalized and less exposure to liquidity risk. Nevertheless, decrease in Islamic banks’ liquidity led some Islamic banks in GCC countries to declare significant losses in 2009.Originality/value: The result of the study contributes towards understanding the determinants of financial stability of both Islamic banks and conventional banks during financial crisis periods. It is important for policy ramifications by the Central Banks in GCC in terms of treating both types of banks differently to mitigate against future financial crises.

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“…Central bank macroprudential policies always have an impact on financial stability. In particular, this was explored in Klingelhöfer and Sun (2019) in the case of China, which identified an immediate and ongoing impact on lending, maintaining financial stability without slowing economic growth. The policy is a complement to monetary policy to offset financial risks.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Stability and its Impact on National Security State: Organizational and Legal Aspects

Onyshchuk¹,

Onyshchuk²,

Petroye³

et al. 2020

IJEBA

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Purpose: This paper analyzes the financial stability, the reasons for the low level of financial stability and their impact on the national security of Ukraine. Design/Methodology/Approach: By observation, monitoring of causes and effects of financial stability. Findings: The study found that the main financial stability issues that affected national security in Ukraine were the ineffective regulatory legislation, the high level of distrust in the financial sector, the low growth rates of securities, the high level of credit rates. Also the fact that the financial sector is not capable of securing redistribution of funds in the Ukrainian economy, inefficient use of deposits by the banking sector, insufficient capital of the banking system, low dependence of the banking system on market activity, low level of ability of banks' own capital to cover losses. At the same time banks were exposed to the risk of insolvency of non-financial corporations with insufficient level of money market security and monetization in Ukraine. Practical Implications: A number of problems that negatively affect national security have been systematized. Measures have been developed that will contribute to the development of the financial sector. Originality/Value: With this article we show that the financial stability of the state, its financial dependency / independence can significantly affect national security, economic security, social security, scientific and technological, military and other types of securities.

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Macroprudential policy, central banks and financial stability: Evidence from China

Cited by 64 publications

References 70 publications

Requiem for the interest rate controls in China

Requiem for the interest rate controls in China

Capital and Liquidity Risks and Financial Stability: Pre, During and Post Financial Crisis Between Islamic and Conventional Banks in GCC Countries, in the Light of Oil Prices Decline

Financial Stability and its Impact on National Security State: Organizational and Legal Aspects

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