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Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries

This study aims to examine whether Central Bank Independence (CBI) and Macroprudential Policy (MAPP) are capable of assisting the improvement of stability in the financial system, regarding the credit gap for 20 developing markets from 2000 to 2021. To examine this financial association, a panel thr...

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Detalles Bibliográficos
Autores principales: Anwar, Cep Jandi, Hall, Stephen G., Harb, Nermeen, Suhendra, Indra, Purwanda, Eka
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10187913/
https://www.ncbi.nlm.nih.gov/pubmed/37192222
http://dx.doi.org/10.1371/journal.pone.0285800
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author Anwar, Cep Jandi
Hall, Stephen G.
Harb, Nermeen
Suhendra, Indra
Purwanda, Eka
author_facet Anwar, Cep Jandi
Hall, Stephen G.
Harb, Nermeen
Suhendra, Indra
Purwanda, Eka
author_sort Anwar, Cep Jandi
collection PubMed
description This study aims to examine whether Central Bank Independence (CBI) and Macroprudential Policy (MAPP) are capable of assisting the improvement of stability in the financial system, regarding the credit gap for 20 developing markets from 2000 to 2021. To examine this financial association, a panel threshold nonlinear model was implemented, based on the potentially time-varying influence of the CBI and MAPP index on the credit gap. The effects of this relationship also emphasized the CBI degree, whose greater level often stabilized the financial sector better. In this case, a stronger effect is commonly prioritized when CBI is below its trend. Based on the analysis, the selected experimental countries were categorized into two groups. The results showed that the nations with a higher CBI degree had greater stability in the financial system. Tighter MAPP also improved financial stability when CBI was below its trend. However, it did not enhance stability when CBI was more than the threshold level.
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spelling pubmed-101879132023-05-17 Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries Anwar, Cep Jandi Hall, Stephen G. Harb, Nermeen Suhendra, Indra Purwanda, Eka PLoS One Research Article This study aims to examine whether Central Bank Independence (CBI) and Macroprudential Policy (MAPP) are capable of assisting the improvement of stability in the financial system, regarding the credit gap for 20 developing markets from 2000 to 2021. To examine this financial association, a panel threshold nonlinear model was implemented, based on the potentially time-varying influence of the CBI and MAPP index on the credit gap. The effects of this relationship also emphasized the CBI degree, whose greater level often stabilized the financial sector better. In this case, a stronger effect is commonly prioritized when CBI is below its trend. Based on the analysis, the selected experimental countries were categorized into two groups. The results showed that the nations with a higher CBI degree had greater stability in the financial system. Tighter MAPP also improved financial stability when CBI was below its trend. However, it did not enhance stability when CBI was more than the threshold level. Public Library of Science 2023-05-16 /pmc/articles/PMC10187913/ /pubmed/37192222 http://dx.doi.org/10.1371/journal.pone.0285800 Text en © 2023 Anwar et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Anwar, Cep Jandi
Hall, Stephen G.
Harb, Nermeen
Suhendra, Indra
Purwanda, Eka
Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title_full Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title_fullStr Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title_full_unstemmed Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title_short Evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
title_sort evaluation of central bank independence, macroprudential policy, and credit gap in developing countries
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10187913/
https://www.ncbi.nlm.nih.gov/pubmed/37192222
http://dx.doi.org/10.1371/journal.pone.0285800
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