ASSESSING AND MITIGATING THE IMPACT OF GEOPOLITICAL RISK UNCERTAINTY ON THE INDIAN FINANCIAL SECTOR: A POLICY PERSPECTIVE

Authors

Satish Kumar, Indian Institute of Management Nagpur, Nagpur, India.Follow
Amar Rao, BML Munjal University, Gurugram, IndiaFollow

Document Type

Article

Abstract

The study explores the impact of geopolitical risk uncertainty on the Indian financial sector, focusing on bonds, banking, currency, and the equity markets. It uses a quantile vector autoregression (QVAR) approach to examine shock transmission under different market conditions. Results show that geopolitical risks significantly influence the Indian financial sector, with varying levels of shock transmission across different market conditions. The currency and banking sectors show heightened sensitivity during periods of increased uncertainty. The findings suggest the need for effective monitoring systems and comprehensive risk management strategies to mitigate the adverse effects of geopolitical risks.

Recommended Citation

Kumar, Satish and Rao, Amar (2024) "ASSESSING AND MITIGATING THE IMPACT OF GEOPOLITICAL RISK UNCERTAINTY ON THE INDIAN FINANCIAL SECTOR: A POLICY PERSPECTIVE," Bulletin of Monetary Economics and Banking: Vol. 27: No. 3, Article 5.
DOI: https://doi.org/10.59091/2460-9196.2278
Available at: https://bulletin.bmeb-bi.org/bmeb/vol27/iss3/5

First Page

483

Last Page

526

Country

India

Affiliation

Indian Institute of Management Nagpur