Description

The purpose of the Financial Stability Report (FSR) is to report, on a semi-annual basis, recent macroeconomic and financial events that could affect the financial stability of the Chilean economy, such as the evolution of the indebtedness of the main credit users, the performance of the capital market, and the capacity of the financial system and the international financial position to adapt adequately to adverse economic situations. Together with the above, the FSR presents the policies and measures aimed at the normal functioning of the financial system, in order to promote knowledge and public debate on these issues. In this work, a methodology of text mining and sentiment analysis is proposed to estimate the tone of the FSR. Two products are generated from this work, a financial stability dictionary in Spanish and a Financial Sentiment Index. Based on OLS estimates, it is observed that a more optimistic tone of the FSR is in line with higher economic and credit activity, lower volatility in local and foreign financial asset prices, a more capitalized banking sector and lower political and economic uncertainty.