Central Bank’s Role in Ensuring Financial Stability and An Efficient Pass-Through of Monetary Policy Measures

Gabriela Latea
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Gabriela Latea: The Romanian Academy, “Costin C. Kirițescu†Economic Research National Institute, Bucharest, Romania

Finante - provocarile viitorului (Finance - Challenges of the Future), 2018, vol. 1, issue 20, 156-167

Abstract: After the emergence of effects from the major financial crisis of 2007-2008, central banks have become centrepieces in ensuring financial stability. The National Bank of Romania plays an intrinsic role in safeguarding financial stability from a dual perspective, i.e. the monetary authority and the prudential authority. In order to examine the efficiency of the pass-through of the effects of changes in the policy rate to the economic agents, we have analysed the existing mechanisms, starting from the interest rates traded on the interbank market and short-term rates on certain banking products targeting households and non-financial corporations. The results confirm the presence of connections, providing quantitative insight on the functioning of these mechanisms.

Keywords: financial stability; monetary policy; interbank market; policy rate. (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:aio:fpvfcf:v:1:y:2018:i:20:p:156-167

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