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Financial stress indicators for small, open, highly euroized countries: the case of Croatia

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  • Mirna Dumicic

    (Croatian National Bank, Zagreb, Croatia)

Abstract

The main objective of this paper is to construct high-frequency composite indicators of financial stress for Croatia that will enable the monitoring of the total level of financial stress and its components on the domestic financial market. Emphasis is put on the choice of variables appropriate for small, open, highly euroized economies characterised by bank-centric financial systems dominantly owned by foreign banks, shallow financial markets and dependence on foreign capital.

Suggested Citation

  • Mirna Dumicic, 2015. "Financial stress indicators for small, open, highly euroized countries: the case of Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 39(2), pages 171-203.
    • Handle: RePEc:ipf:finteo:v:39:y:2015:i:2:p:171-203
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    financial stress; financial stability; financial markets; systemic risk; composite index; Croatia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • G0 - Financial Economics - - General

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