Monetary policy and its impact on financial stability indicators through capital market indicators

A dissertation submitted to the council of the college  Administration and economics university of Kerbala, as a  partial fulfillment of the requirements to obtain Ph.D. Degree  in the financial and banking sciences.

By:

Atheer Najah Kamil Smasem

Under Supervision:

Prof. Dr. Haidar Yunis Khadem Al- Musawi

Abstract :

Monetary policy is of great importance in the economic system as a basic pillar for the development and progress of the national economy, and thus contributes to enhancing financial and economic stability. Therefore, the Central Bank of Iraq is keen to summarize it in a sophisticated and sophisticated manner. An effective supervisory and supervisory system, and here highlights the role of monetary policy channels that affect the financing of banking institutions and their overlap with financial markets.

Therefore, this study sought to clarify the extent to which monetary policy channels affect financial stability indicators directly and indirectly through capital market indicators. Monetary is deeply concerned with financial stability, and how to manage it, by drawing the policy that affects and controls the work of the banking sector, inflation and gross domestic product, and aims to achieve financial stability as well as economic growth. In addition to the variables that can affect the achievement of financial stability, the study sought to achieve a number of objectives, the most prominent of which was to identify the extent of the impact of monetary policy channels on the general indicator of financial stability. And showing which of these channels has a greater impact than others on the general indicator of financial stability, knowing how the monetary policy channels affect the capital market indicators, and determining the extent of the impact of capital market indicators on the general indicator. Familiarity with financial stability in Iraq, and it also aims to study the seasonal impact of each of the monetary policy channels, capital market indicators and the general indicator of financial stability in Iraq, and for the purpose of achieving the main objectives of the study, hypotheses were formulated based on the study problem, and data were extracted and tested for seasonality of the study variables and the tested correlation. . The study reached a set of conclusions, perhaps the most important of which is to test the hypotheses of the impact of monetary policy channels on indicators of financial stability through capital market indicators. From the exchange rate channel to the market value, and that the market value directly affects the general indicator of financial stability. Perhaps one of the most important recommendations of the study is that there is a strong relationship between the basic components of financing. The system represented by the central bank, financial markets and the infrastructure of the financial system represents a set of legal, regulatory and supervisory frameworks, and none of these components can work in isolation from the other, as each component affects it and is affected by developments. that occur in any of these components, therefore, effective integration must be achieved between monetary policy channels and capital market indicators in order to enhance financial stability in light of a favorable environment for financial and banking institutions that support the efficient and effective performance of financial markets. . Therefore, indicators of financial stability should be used. Effective in Iraq and lost the modern policy of the Central Bank of Iraq.

Monetary policy and its impact on financial stability indicators through capital market indicators

A dissertation submitted to the council of the college  Administration and economics university of Kerbala, as a  partial fulfillment of the requirements to obtain Ph.D. Degree  in the financial and banking sciences.

By:

Atheer Najah Kamil Smasem

Under Supervision:

Prof. Dr. Haidar Yunis Khadem Al- Musawi

Abstract :

Monetary policy is of great importance in the economic system as a basic pillar for the development and progress of the national economy, and thus contributes to enhancing financial and economic stability. Therefore, the Central Bank of Iraq is keen to summarize it in a sophisticated and sophisticated manner. An effective supervisory and supervisory system, and here highlights the role of monetary policy channels that affect the financing of banking institutions and their overlap with financial markets.

Therefore, this study sought to clarify the extent to which monetary policy channels affect financial stability indicators directly and indirectly through capital market indicators. Monetary is deeply concerned with financial stability, and how to manage it, by drawing the policy that affects and controls the work of the banking sector, inflation and gross domestic product, and aims to achieve financial stability as well as economic growth. In addition to the variables that can affect the achievement of financial stability, the study sought to achieve a number of objectives, the most prominent of which was to identify the extent of the impact of monetary policy channels on the general indicator of financial stability. And showing which of these channels has a greater impact than others on the general indicator of financial stability, knowing how the monetary policy channels affect the capital market indicators, and determining the extent of the impact of capital market indicators on the general indicator. Familiarity with financial stability in Iraq, and it also aims to study the seasonal impact of each of the monetary policy channels, capital market indicators and the general indicator of financial stability in Iraq, and for the purpose of achieving the main objectives of the study, hypotheses were formulated based on the study problem, and data were extracted and tested for seasonality of the study variables and the tested correlation. . The study reached a set of conclusions, perhaps the most important of which is to test the hypotheses of the impact of monetary policy channels on indicators of financial stability through capital market indicators. From the exchange rate channel to the market value, and that the market value directly affects the general indicator of financial stability. Perhaps one of the most important recommendations of the study is that there is a strong relationship between the basic components of financing. The system represented by the central bank, financial markets and the infrastructure of the financial system represents a set of legal, regulatory and supervisory frameworks, and none of these components can work in isolation from the other, as each component affects it and is affected by developments. that occur in any of these components, therefore, effective integration must be achieved between monetary policy channels and capital market indicators in order to enhance financial stability in light of a favorable environment for financial and banking institutions that support the efficient and effective performance of financial markets. . Therefore, indicators of financial stability should be used. Effective in Iraq and lost the modern policy of the Central Bank of Iraq.