TY - BOOK ID - 84783748 TI - What Matters for Financial Development and Stability? AU - Almarzoqi, Raja. AU - Ben Naceur, Sami. AU - Kotak, Akshay. PY - 2015 SN - 1513589695 1513563920 1513524925 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Econometrics KW - Finance: General KW - Demography KW - Financial Markets and the Macroeconomy KW - Monetary Policy KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Estimation KW - Financial Crises KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Demographic Economics: General KW - Econometrics & economic statistics KW - Finance KW - Economic & financial crises & disasters KW - Banking KW - Population & demography KW - Estimation techniques KW - Financial sector development KW - Banking crises KW - Commercial banks KW - Population and demographics KW - Econometric analysis KW - Financial markets KW - Financial crises KW - Financial institutions KW - Econometric models KW - Financial services industry KW - Banks and banking KW - Population KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84783748 AB - This study aims to identify policies that influence the development of financial institutions as measured across three dimensions: depth, efficiency, and stability. Applying the concept of the financial possibility frontier, developed by Beck & Feyen (2013) and formalized by Barajas et al (2013a), we determine key policy variables affecting the gap between actual levels of development and benchmarks predicted by structural variables. Our dynamic panel estimation shows that inflation, trade openness, institutional quality, and banking crises significantly affect financial development. Our analysis also helps identify potential complementarities and trade-offs for policy makers, based on the effect of the policy variables across the different dimensions of financial development. ER -