TY  - JOUR
T1  - The Impact of Financial Stability Indexes on Broad Money Growth:
Empirical Study in Commercial Banks Listed in Muscat Security Market
AU - Alshubiri, Faris Nasif 
JO  - International Business Management
VL  - 11
IS  - 2
SP  - 407
EP  - 414
PY  - 2017
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2017.407.414
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2017.407.414
KW  - commercial banks
KW  -broad money
KW  -Financial stability
KW  -Sultanate of Oman
KW  -customers
AB  - This study aims to investigate the impact of financial stability indexes on broad money growth in the
commercial banking sector of Sultanate of Oman. This study used three indexes consists of financial growth
index measured by bank credit to GDP (%), bank deposits to GDP (%) and Herfindahl-Hirschmann index,
financial sensitivity index measured by inflation rate, GDP growth and fiscal balance as percentage of GDP.
Finally, financial safety index measured by debt to GDP ratio (%), z-score and income velocity of broad money
on the dependent variable measured by broad money (M2) growth. Six commercial banks used as a population
of this study listed in Muscat Security Market (MSM) over the period 2008-2014. This study used OLS
regression analysis and the results shows that there are a significant impact of financial growth index variables,
financial sensitivity index variables and financial safety index variables except z-score variable on broad money
growth at 1, 5 and 10% significant level. Multiple regression used and the results shows all independent
variables of each index are high significant at 1% significant level. Finally, the regression runs for all
independent indexes variables and the result shows there is a statistical impact of all financial stability indexes
on broad money growth at 1% significant level. Pearson correlations matrix run in this study between all
variables and shows there is a significant relationship between financial stability index and all variables of all
indexes at 1, 10 and 5% significant level. The researcher recommends that banks are interested in the deal’s
long-term credit contracts in order to impose control and supervision of the banking credit with interest to grant
credit to customers outside of Oman and diversify the economy and create mechanisms to mitigate the potential
risks.
ER  -