Evaluating the nonlinear relationship between nonfinancial corporate sector leverage and financial stability in the post crisis era
This paper analyzes the relationship between the nonfinancial corporate sector leverage (NFCL) and financial stability in the post crisis era, revealing considerable heterogeneity across the level of financial intermediation (FI).First, we use the financial soundness indicators proposed by the IMF and the generalized dynamic factor model (GDFM) to