DATA AVAILABILITY STATEMENT : All relevant data are
within the paper and its Supporting Information
files.This study aims to examine whether Central Bank Independence (CBI) and Macroprudential
Policy (MAPP) are capable of assisting the improvement of stability in the financial system,
regarding the credit gap for 20 developing markets from 2000 to 2021. To examine this
financial association, a panel threshold nonlinear model was implemented, based on the
potentially time-varying influence of the CBI and MAPP index on the credit gap. The effects
of this relationship also emphasized the CBI degree, whose greater level often stabilized the
financial sector better. In this case, a stronger effect is commonly prioritized when CBI is
below its trend. Based on the analysis, the selected experimental countries were categorized into two groups. The results showed that the nations with a higher CBI degree had
greater stability in the financial system. Tighter MAPP also improved financial stability when
CBI was below its trend. However, it did not enhance stability when CBI was more than the
threshold level.http://www.plosone.orghj2023Economic