WHAT IS THE IMPACT OF MONETARY POLICY ON SYSTEMIC RISK OF REPUBLIC OF MOLDOVA'S BANKING SECTOR?
WHAT IS THE IMPACT OF MONETARY POLICY ON SYSTEMIC RISK OF REPUBLIC OF MOLDOVA'S BANKING SECTOR?
Author(s): Vadim LOPOTENCOSubject(s): Supranational / Global Economy, Economic policy, Financial Markets
Published by: EDITURA INDEPENDENŢA ECONOMICĂ
Keywords: systemic risk; monetary policy; financial stability; banking crisis;
Summary/Abstract: In a market economy, monetary policy is a strategic tool of the state in balancing the market and influence on economic processes and therefore, the monetary policy has an impact on all economic sectors, including banking. We investigate the impact of monetary policy on systemic risk of Moldovan banks. We will try to find the correlation between interest rates for an extended period of time and increase bank risk. This result allows us to propose measures to prevent and reduce systemic risk, such as macroeconomic and institutional controls, including the intensity of surveillance activities, securitization and bank competition. The results will allow us to analyze the neutrality of monetary policy to financial stability of the banking sector in the Republic of Moldova.
Journal: REVISTA ECONOMIA CONTEMPORANĂ
- Issue Year: 2/2017
- Issue No: 1
- Page Range: 157-163
- Page Count: 7
- Language: English