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Taking Stock of the Financial Sector Policy Response to COVID-19 around the World

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dc.contributor.authorFeyen, Erik
dc.contributor.authorAlonso Gispert, Tatiana
dc.contributor.authorKliatskova, Tatsiana
dc.contributor.authorMare, Davide S.
dc.date.accessioned2020-12-17T15:20:49Z
dc.date.available2020-12-17T15:20:49Z
dc.date.issued2020-12
dc.description.abstractThis paper introduces a new global database and a policy classification framework that records the financial sector policy response to the COVID-19 pandemic across 154 jurisdictions. It documents that authorities around the world have taken a diverse array of measures to mitigate financial distress in markets and for borrowers, and to support the provision of critical financial services to the real economy. Measures that focus on the banking sector constitute the majority of policies taken and aim to take advantage of the flexibility embedded in the international standards. However, emerging markets and developing economies tend to rely more on prudential measures that go beyond this embedded flexibility compared with advanced economies, which may reduce bank balance sheet transparency and increase risks. 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 have typically been significantly more responsive and have taken more policy measures in emerging markets and developing economies that are richer and more populous. 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, and fiscal and containment policies appear to play a limited role. In a substantially smaller sample, the paper explores the role of banking characteristics and finds that emerging markets and developing economies with higher private credit levels and that have adopted Basel III features have taken fewer policy measures. Future work is necessary for better understanding the country determinants of the policy response as well as the effectiveness and potential unintended consequences of the measures.en
dc.identifierhttp://documents.worldbank.org/curated/en/143061607958551050/Taking-Stock-of-the-Financial-Sector-Policy-Response-to-COVID-19-around-the-World
dc.identifier.doi10.1596/1813-9450-9497
dc.identifier.urihttps://hdl.handle.net/10986/34941
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9497
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL STABILITY
dc.subjectCORONAVIRUS
dc.subjectCOVID-19
dc.subjectGOVERNMENT POLICY
dc.subjectPANDEMIC RESPONSE
dc.titleTaking Stock of the Financial Sector Policy Response to COVID-19 around the Worlden
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTaking Stock of the Financial Sector Policy Response to COVID-19 around the World
okr.date.disclosure2020-12-14
okr.date.doiregistration2025-04-10T11:51:57.664490Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/143061607958551050/Taking-Stock-of-the-Financial-Sector-Policy-Response-to-COVID-19-around-the-World
okr.guid143061607958551050
okr.identifier.doi10.1596/1813-9450-9497
okr.identifier.externaldocumentum090224b0880d0f8e_2_0
okr.identifier.internaldocumentum32667001
okr.identifier.reportWPS9497
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/143061607958551050/pdf/Taking-Stock-of-the-Financial-Sector-Policy-Response-to-COVID-19-around-the-World.pdfen
okr.statistics.combined2864
okr.statistics.dr143061607958551050
okr.statistics.drstats1724
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicFinance and Financial Sector Development::Financial Crisis Management & Restructuring
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicFinance and Financial Sector Development::Financial Sector and Social Assistance
okr.topicHealth, Nutrition and Population::Disease Control & Prevention
okr.topicMacroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.unitFinance, Competitiveness and Innovation Global Practice
relation.isAuthorOfPublicationca96ab93-217d-4359-a222-2481b357efdb
relation.isAuthorOfPublication.latestForDiscoveryca96ab93-217d-4359-a222-2481b357efdb
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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