Bank Financial Stability and International Oil Prices: Evidence from Listed Russian Public Banks

Based on Albulescu (2022), this brief investigates the impact of international oil prices on Russian public banks stability. To this end, we use a Pool Mean Group (PMG) estimator for 17 listed public banks, covering the period 2008 to 2016. We explore both the macroeconomic and financial channels of oil price fluctuations and we propose a new approach for the identification of oil price shocks, allowing to account for the oil price volatility effect over a longer period. Our unique findings show that: (i) an increase in oil prices has a long-run positive effect on the bank financial stability, and (ii) positive oil-price shocks enhance the stability in the long run, whereas the negative oil-price shocks have an opposite effect. No significant impact is recorded in the short-run.

Author: Claudiu Tiberiu, Albulescu
Volume: 2022.11
Publisher: INFER
Year: 2022
No. of pages: 4
INFER Briefs