---
title: Central Bank Policies
url: https://www.ml-quant.com/papers/ssrn/4927384/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4927384
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4927384
featured: 2024-08-21
citations: unknown
topic: Risk, Credit & Banking
---


# Central Bank Policies

The study examines the effects of central bank balance sheet policies on financial stability, concluding that while they help stabilize the economy during financial stress, they also prolong and increase the likelihood of such episodes.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4927384
- Identifier: SSRN 4927384
- Released: 2024-08-16
- First featured: Quant Letter No. 62 (2024-08-21): https://www.ml-quant.com/issues/2024-08-21/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

## Related

- [Central Bank Communications on Financial Stability](https://www.ml-quant.com/papers/ssrn/4924953/): The research investigates how central bank communications impact volatility in different markets, offering valuable information for investors and policy makers about the potential and limitations of monetary policy communications.
- [The Bank of Italy’s Statistical Model for the Credit Assessment of Non-Financial Firms](https://www.ml-quant.com/papers/ssrn/5270521/): The Bank of Italy uses a combination of statistical models and expert assessments in its in-house credit assessment system to predict default probabilities of non-financial firms, aiding in monetary policy.
- [Unveiling Early Warning Signals of Systemic Risks in Banks: A Recurrence Network-Based Approach](https://www.ml-quant.com/papers/arxiv/2310.10283/): The research introduces a method using high-frequency data to detect early signs of potential bank crises, proving that certain indicators can predict periods of high volatility in banking.
- [The Predictive Power of Central Bank Communication: Evidence from Mexico](https://www.ml-quant.com/papers/ssrn/4595144/): Predictive Power: The study reveals that Natural Language Processing can predict short-term interest rate decisions based on the communication strategy of Banco de México.
- [Contagion Effects of the Silicon Valley Bank Run](https://www.ml-quant.com/papers/arxiv/2308.06642/): The study analyzes the impact of Silicon Valley Bank's failure on other banks, highlighting the role of uninsured deposits and bank size, with mid-sized banks being most affected.
- [Large Banks and Systemic Risk: Insights from a Mean-Field Game Model](https://www.ml-quant.com/papers/arxiv/2305.17830/): Insights from a Game Model: Study investigates impact of large banks on financial system stability.