recommendations of the 2004 FSAP. Many improvements have been made to bank and securities supervision. The banking sector as a whole …

elements of credit risk management and important to prudential oversight. As illustrated in this paper, valuation feeds into … indicators of overall bank soundness and key macroprudential indicators. Country practices and recent moves to more forward …

indicate that the banking system is relatively resilient to the direct effects of individual shocks, with credit risk having …

The paper proposes a theoretical argument on the nature of bank lending, based on the idea that, through commitment and … credit rationing theories, the paper shows that, within a framework of asymmetric information between lenders and borrowers …-term credit history; and (ii) that interest rate spreads may be large if significant market imperfections prevail. …

would be vulnerable to a deterioration in credit quality. The banking sector needs to play a more effective role in …