Showing 1 - 10 of 664
deposits combined with nominal depreciation or low liquidity, and (iii) low bank profitability-highlight that foreign currency … risk, poor financial soundness, and macroeconomic instability are key vulnerabilities triggering banking crises. The main …
Persistent link: https://www.econbiz.de/10005599621
This paper discusses operational aspects of official emergency liquidity support to individual institutions under …
Persistent link: https://www.econbiz.de/10005263737
choices, and increase refinancing risk. To be effective, liquidity requirements should be complemented by measures that …Banks may be unable to refinance short-term liabilities in case of solvency concerns. To manage this risk, banks can … accumulate a buffer of liquid assets, or strengthen transparency to communicate solvency. While a liquidity buffer provides …
Persistent link: https://www.econbiz.de/10010790317
Banks’ liquidity holdings are comfortably above legal or prudential requirements in most Central American countries …. While good for financial stability, high systemic liquidity may nonetheless hinder monetary policy transmission and … precautionary liquidity buffers is associated with measures of bank size, profitability, capitalization, and financial development …
Persistent link: https://www.econbiz.de/10011142020
This paper seeks to draw lessons from the IMF’s experience in handling financial crises around the globe over the past ten years that are relevant to the challenges faced by countries in Latin America, especially in the wake of the recent crisis in Argentina. Experience suggests that...
Persistent link: https://www.econbiz.de/10005824823
involves liquidity support and resolution actions. Principal benefits of intervention include avoiding panic and eliminating …
Persistent link: https://www.econbiz.de/10005826210
Rapid credit growth in Bulgaria, Romania, and Ukraine has been driven by successful macroeconomic stabilization, robust growth, and capital inflows. While financial deepening is both expected and welcome, the recent expansions appear to have been excessive, as evidenced by widening current...
Persistent link: https://www.econbiz.de/10005826445
This study looks at the first two years of the banking crisis that erupted in Indonesia in late 1997. It finds that the banking sector was weak at the outset, and that governance problems intensified the crisis and seriously delayed its resolution. Although a strategy was put in place over the...
Persistent link: https://www.econbiz.de/10005826629
Recent financial sector crises and their resolution have raised new issues and provided additional experiences to draw on in the future. Banking sector problems in Russia, Turkey, and a few Latin American countries occurred within the context of highly dollarized economies, high levels of...
Persistent link: https://www.econbiz.de/10005590869
A well-designed deposit insurance system (DIS) will provide incentives for citizens to keep the financial system sound. However, a poorly designed DIS can foster a financial crisis. This paper, therefore, makes recommendations for creating and running a limited, incentive-compatible, DIS. The...
Persistent link: https://www.econbiz.de/10005599779