Central bank communication on financial stability

• Thesis title in Czech: Komunikace centrálních bank vůči finanční stabilitě
• Thesis title in English: Central bank communication on financial stability
• Key words: Finanční stabilita, Transparentnost centrálních bank, Zprávy o finanční stabilitě
• English key words: Financial Stability, Central bank communication, Financial Stability Reports
• Academic year of topic announcement: 2010/2011
• Thesis type: diploma thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: prof. Roman Horváth, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 02.06.2011
• Date of assignment: 02.06.2011
• Date and time of defence: 28.06.2012 00:00
• Venue of defence: Opetalova ul. 26
• Date of electronic submission: 18.05.2012
• Date of proceeded defence: 28.06.2012
• Opponents: doc. PhDr. Adam Geršl, Ph.D.

References

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Preliminary scope of work

Pr�ace zkoum�a komunikaci centr�aln��ch bank ohledn�e �fina�ncni�� stability. Nejd�ri��ve
byly identifi�kov�any nejd�ule�zit�ej�si�� prvky a komunika�cni�� n�astroje jako nap�r. Zpr�avy
o fi�nan�cni�� stabilit�e, z�at�e�zov�e testy fi�nan�cn��ho sektoru, indik�atory fi�nan�cni�� sta-
bility atd. Pot�e byly vybran�e prvky pou�zity pro konstrukci indexu transpar-
entnosti centr�aln��ch bank v�u�ci �finan�cni�� stabilit�e (FST index) pro 110 zem��i v
obdob��i 2000 a�z 2011.
Tento index byl d�ale vyu�zit pro zji�st�eni�� nejd�ule�zit�ej�si��ch determinant trans-
parentnosti centr�aln��ch bank. Z v�ysledk�u vypl�yv�a, �ze transparentnost v�u�ci
�finan�cni�� stabilit�e je ovlivn�ena nejv��ice transparentnosti�� bank v�u�ci monet�arn��i
politice, d�ale velikosti�� a vysp�elosti�� dan�e zem�e.
V posledni �c�asti pr�ace zkoum�a vliv komunikace centr�aln��ich bank na fi�nan�cni��
stabilitu v dan�e zemi. Poda�rilo se uk�azat, �ze komunikace m�a pozitivni�� vliv na
�finan�cni�� stabilitu v n�asleduji��ci��m roce. Celkov�e se komunikace hodnoti�� jako je�st�e
relativne�� nevysp�el�a, nicm�en�e s velk�ym potenci�alem ovliv�novat �finan�cni�� stabilitu
v budoucnosti.

Preliminary scope of work in English

This research analyses central bank communication on fi�nancial stability.
First, most important international comparable features of the communica-
tion are identifi�ed, such as Financial Stability Reports, Stress tests, Financial
soundness indicators, etc. These are then used for the construction of Financial
stability transparency index (FST index) for 110 countries from 2000 to 2011.
FST index is used to determine the most important drivers of central bank
communication. In particular, the level of transparency towards �financial sta-
bility depends most on monetary policy transparency, size and development of
the economy.
Finally, the impact of �financial stability transparency on fi�nancial stability
is under investigation. Using two proxies for fi�nancial stress, for the �first time,
evidence of the influence of central bank communication on �financial soundness was found.
It is concluded that the communication still has not reached its steady state and
markets have only limited experience using it. However, the communication has a strong
potential to influence fi�nancial stability in the future.