<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper considers financial stability through the processes of accumulation and materialisation of systemic risks. To this end, the method of principal component analysis on the example of Croatia has been used to construct two composite indicators – a systemic risk accumulation index and an index reflecting the consequences of systemic risk materialisation. In the construction of the indices, the features and risks specific to small open economies were considered. Such an approach to systemic risk analysis facilitates the monitoring and understanding of the degree of financial stability and communication of macroprudential policy makers with the public.</p></abstract>

This paper considers financial stability through the processes of accumulation and materialisation of systemic risks. To this end, the method of principal component analysis on the example of Croatia has been used to construct two composite indicators – a systemic risk accumulation index and an index reflecting the consequences of systemic risk materialisation. In the construction of the indices, the features and risks specific to small open economies were considered. Such an approach to systemic risk analysis facilitates the monitoring and understanding of the degree of financial stability and communication of macroprudential policy makers with the public.

Financial Stability Indicators – The Case of Croatia<xref ref-type="fn" rid="fn1_w2aab2b8c15b1b7b1ab1aaAa"><sup>1</sup></xref>

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial Stability Indicators – The Case of Croatia

This paper considers financial stability through the processes of accumulation and materialisation of systemic risks. To this end, the method of principal...

Financial Stability Indicators – The Case of Croatia¹

Data publikacji: 26 sty 2016

Zakres stron: 113 - 140

DOI: https://doi.org/10.1515/jcbtp-2016-0006

Słowa kluczowe
financial stability, systemic risks, financial system resilience, principal component analysis, Croatia

© 2016 Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial Stability Indicators – The Case of Croatia1

Data publikacji: 26 sty 2016

Zakres stron: 113 - 140

DOI: https://doi.org/10.1515/jcbtp-2016-0006

Słowa kluczowefinancial stability, systemic risks, financial system resilience, principal component analysis, Croatia

© 2016 Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial Stability Indicators – The Case of Croatia¹

Słowa kluczowe
financial stability, systemic risks, financial system resilience, principal component analysis, Croatia