1Avicenne Private Business School Tunisia
2Higher Institute of Business Administration Tunisia
International Journal of Econometrics and Financial Management.
2016,
Vol. 4 No. 1, 17-28
DOI: 10.12691/ijefm-4-1-3
Copyright © 2016 Science and Education PublishingCite this paper: Mourad Hmida, Mohsen Bensalem Brahmi. Bond Markets and Financial Stability: Evidence from the Asian Experience.
International Journal of Econometrics and Financial Management. 2016; 4(1):17-28. doi: 10.12691/ijefm-4-1-3.
Correspondence to: Mourad Hmida, Avicenne Private Business School Tunisia. Email:
hmida.mourad@yahoo.frAbstract
Since the advent of the financial crisis of 1997-98, the development of bond markets in Asia is the center of interest of the governments of the region. This effort reflects the prevalent view recently emphasized the importance of domestic bond markets in the prevention of financial fragility in an open capital flows context. The aim of this article is to investigate about the nature and mechanisms of the links between the development of bond markets and financial stability. The analysis focuses on the experience of nine Asian countries over the period 1997 - 2009. The tests cover specific aspects of the development of a bond market hand, and financial stability indicators of capital adequacy, asset quality and profitability in the other hand. The empirical study reveals a significant role of the domestic bond markets in reducing financial vulnerability of the region.
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