A Study on Government Intervention in Banking Systems: The Case of Reserve Requirement Ratio

Abstract

As far as government intervention plays an important role in the development of a country contributing to the measurement and analysis of such an intervention assists to have a brief idea about economic conditions of countries in several aspects, and to interpret  the  current situation of countries’ various governmental bodies. In this paper revision you will kindly find a useful tool developed as a result of great efforts of my professor Mr. Orkhan and mine. Considering different instruments that have modeling effecs in the banking sector our tool-Economic Model Index helps to define to what extent governments intervene in the banking sector, or in other words, the degree of the liberality of the banking sector and to have an overall view about the relationship between governmental intervention and the liberality of banking systems.