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Monetary Policy, Macroprudential Policy, Institutional Quality and Bank Risk: Evidence from Eagle Group

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Prediction and Causality in Econometrics and Related Topics (ECONVN 2021)

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Abstract

This research aims to evaluate the impact of monetary policy and macroprudential policy on bank risk in the Emerging and growth-leading economies (EAGLEs). The results show that interest rate, M2 money supply growth, and credit growth intensify bank risk; regulatory capital to risk weighted assets improve banking stability in the EAGLE group. This study also reveals that the interaction between monetary policy and macroprudential policy increases bank risk, but the probability of this event is relatively low. Besides, the paper demonstrates that institutional quality enhances banking stability.

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Authors and Affiliations

  1. Ho Chi Minh Industry and Trade College, 20 Tang Nhon Phu, District 9, Ho Chi Minh City, Vietnam

    Nguyen Tran Xuan Linh

  2. Institute for Research Science and Banking Technology, Banking University HCMC, 36 Ton That Dam, District 1, Ho Chi Minh City, Vietnam

    Nguyen Ngoc Thach

  3. Ho Chi Minh City People’s Committee Office, 86 Le Thanh Ton, District 1, Ho Chi Minh City, Vietnam

    Nguyen Ngoc Tan

Authors
  1. Nguyen Tran Xuan Linh
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  2. Nguyen Ngoc Thach
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  3. Nguyen Ngoc Tan
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Editor information

Editors and Affiliations

  1. Banking University Ho Chi Minh City, Ho Chi Minh, Vietnam

    Nguyen Ngoc Thach

  2. Banking University of Ho Chi Minh City, Ho Chi Minh, Vietnam

    Doan Thanh Ha

  3. Banking University of Ho Chi Minh City, Ho Chi Minh, Vietnam

    Nguyen Duc Trung

  4. Computer Science Department, University of Texas at El Paso, El Paso, TX, USA

    Vladik Kreinovich

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Linh, N.T.X., Thach, N.N., Tan, N.N. (2022). Monetary Policy, Macroprudential Policy, Institutional Quality and Bank Risk: Evidence from Eagle Group. In: Ngoc Thach, N., Ha, D.T., Trung, N.D., Kreinovich, V. (eds) Prediction and Causality in Econometrics and Related Topics. ECONVN 2021. Studies in Computational Intelligence, vol 983. Springer, Cham. https://doi.org/10.1007/978-3-030-77094-5_25

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