Cover; Contents; I. Introduction; II. Data; III. Methodologies and Results; A. Solvency risk; B. Oil-Macro-Financial Linkages; IV. Robustness; A. Different Variable Ordering; B. Feedback Through Asset Prices; V. Conclusion; VI. Annex; References; Figures; 1. Oil Prices and U.S. Interest Rate Expectations; 2. Macroeconomic Variables; 3. Bank-Level Variables; 4. Distribution of Non-Performing Loan Ratio in Saudi Arabia; 5. Dynamics of NPL Ratios; 6. Oil-Macro-Financial Feedback Effects, Baseline Specification; Tables; 1. Variable Description and Unitroot Test P-Values
Summary
Oil-macro-financial linkages in Saudi Arabia are analyzed by applying panel econometric frameworks (multivariate and vector autoregression) to macroeconomic and bank-level balance sheet data for 9 banks spanning 1999- 014. Lower growth of oil prices and non-oil private sector output leads to slower credit and deposit growth and higher nonperforming loan ratios, with feedback loops within bank balance sheets which in turn dampens economic activity. U.S. interest rates are not found to be a key determinant.--Abstract
Notes
"February 2016."
"Middle East and Central Asia."
Bibliography
Includes bibliographical references (pages 21-22)
Notes
Online resource; title from pdf title page (IMF.org Web site, viewed March 31, 2016)