Energy prices (EPs) play an imperative role in South Asian Country (SAC) Gross Domestic Product (GDP). This research empirically examines the influence of sustainable energy price shocks (EPSs) on macroeconomic indicators. The study is to forecast the impact of EPS on macroeconomic indicators from 1980 to 2020. The analysis is carried out by employing the Vector Auto-Regression (VAR) approach. Impulse Response Functions (IRFs) results indicate that EPS decreases Gross Domestic Product (GDP). They exist in the short run and the long run. This research study’s overall findings suggest that high EPSs have a negative impact on GDP. The study implies that policymakers should develop, adopt, and initiate some imperatives to control the unanticipated volatility and movements in EP. The study highlights that policy should be designed to prevent fluctuations in sustainable EP and plan conservative energy policies that motivate discovering alternative energy sources to meet increasing energy demand and improve economic growth.

Traditional banks face the issue of risk diversification, and it is dealt with when they evolve into financial institutions. So, the present study aims to investigate banking and off-balance sheet (OBS)-based risks and regulatory changes in certain age-old South Asian (SA) banks and finds the tenacity of the OBS in the long run. For these research goals, two estimates are applied: fixed effects (FE) and generalized method of moments (GMM). Using FE, the researchers estimate the realm and time for finding financial shocks and other time-related factors affecting the SA countries. The majority of findings reveal a constant market theory stating the performance of SA in assessing OBS-related risks. Banks in SA also seem to follow the market regulatory and TT in capital needs that will incentivize banks to take too much risk in off-balance sheet activities (OBSA). The research findings are practically applied to bank-related risks, pressure from regulatory restructuring, and dangers from the systematic factors beneficial to policymakers and practitioners. Request access from your librarian to read this article's full text.