Post Crisis Structural Reforms and Goal of Economic Stability role of Banking Sector in SAARC Countries.

Abstract

The post financial crisis decade (2007-2017) has brought drastic structural changes in the banking sector, like improved global prudential
frameworks and enhanced supervision. Main rationale behind these changes is to regain financial stability and economic strength through stronger
liquidity, capital safeguards, reducing government subsidies, and tax rationalization (Dudley, 2018). The present study analyzes post-crisis
structural reforms in SAARC (South Asian Association of Regional Cooperation) countries and their subsequent effects on economic stability.
This study also observes the role of the banking sector in achieving the goal of economic stability. Owing to quantitative data, positivist research
philosophy has been used along with pertinent financial and economic variables. A set of panel data is developed, and the Fixed Effect Method has
been used. The period of analysis covers 32 years (1989 to 2020). The main results favor long-term effects of structural reforms in achieving the goal of
economic stability with a potential role of the financial sector in SAARC.