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Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies

This paper introduces a new global database and a policy classification framework that records the financial sector policy response to the COVID-19 pandemic across 155 jurisdictions and over time. It documents that authorities around the world have taken a diverse array of measures to mitigate finan...

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Autores principales: Feyen, Erik, Alonso Gispert, Tatiana, Kliatskova, Tatsiana, Mare, Davide S.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: The International Bank for Reconstruction and Development/The World Bank. Published by Elsevier B.V. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8653394/
https://www.ncbi.nlm.nih.gov/pubmed/34898821
http://dx.doi.org/10.1016/j.jbankfin.2021.106184
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author Feyen, Erik
Alonso Gispert, Tatiana
Kliatskova, Tatsiana
Mare, Davide S.
author_facet Feyen, Erik
Alonso Gispert, Tatiana
Kliatskova, Tatsiana
Mare, Davide S.
author_sort Feyen, Erik
collection PubMed
description This paper introduces a new global database and a policy classification framework that records the financial sector policy response to the COVID-19 pandemic across 155 jurisdictions and over time. It documents that authorities around the world have taken a diverse array of measures to mitigate financial distress in the markets and for borrowers, and to support the provision of critical financial services to the real economy. Using Cox proportional hazards and Poisson regressions, the paper takes initial steps to analyze the determinants of policy makers’ responsiveness and activity in emerging markets and developing economies, respectively. The results indicate that policy makers in richer and more populous countries have been significantly more responsive and have taken more policy measures. Belonging to a monetary union is also significantly associated with a faster and more frequent intervention. Countries with higher private debt levels tend to respond earlier with banking sector and liquidity and funding measures. The spread of COVID-19, macro-financial fundamentals, pressure on foreign exchange markets, political settings, and fiscal and containment policies appear to play a limited role in determining policy response. In a substantially smaller sample, the paper explores the role of banking sector characteristics and finds that emerging markets and developing economies with higher private bank credit to GDP and that have adopted Basel III reforms have taken fewer policy measures.
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spelling pubmed-86533942021-12-08 Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies Feyen, Erik Alonso Gispert, Tatiana Kliatskova, Tatsiana Mare, Davide S. J Bank Financ Article This paper introduces a new global database and a policy classification framework that records the financial sector policy response to the COVID-19 pandemic across 155 jurisdictions and over time. It documents that authorities around the world have taken a diverse array of measures to mitigate financial distress in the markets and for borrowers, and to support the provision of critical financial services to the real economy. Using Cox proportional hazards and Poisson regressions, the paper takes initial steps to analyze the determinants of policy makers’ responsiveness and activity in emerging markets and developing economies, respectively. The results indicate that policy makers in richer and more populous countries have been significantly more responsive and have taken more policy measures. Belonging to a monetary union is also significantly associated with a faster and more frequent intervention. Countries with higher private debt levels tend to respond earlier with banking sector and liquidity and funding measures. The spread of COVID-19, macro-financial fundamentals, pressure on foreign exchange markets, political settings, and fiscal and containment policies appear to play a limited role in determining policy response. In a substantially smaller sample, the paper explores the role of banking sector characteristics and finds that emerging markets and developing economies with higher private bank credit to GDP and that have adopted Basel III reforms have taken fewer policy measures. The International Bank for Reconstruction and Development/The World Bank. Published by Elsevier B.V. 2021-12 2021-05-21 /pmc/articles/PMC8653394/ /pubmed/34898821 http://dx.doi.org/10.1016/j.jbankfin.2021.106184 Text en © 2021 The International Bank for Reconstruction and Development/The World Bank Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Feyen, Erik
Alonso Gispert, Tatiana
Kliatskova, Tatsiana
Mare, Davide S.
Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title_full Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title_fullStr Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title_full_unstemmed Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title_short Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies
title_sort financial sector policy response to covid-19 in emerging markets and developing economies
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8653394/
https://www.ncbi.nlm.nih.gov/pubmed/34898821
http://dx.doi.org/10.1016/j.jbankfin.2021.106184
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