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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
Financial crises are endogenized through corporate and interbank market institutions. Single-bank financing leads to a pooling equilibrium in the interbank market. With private information about one’s own solvency, the best illiquid banks will not borrow but rather will liquidate some...
Persistent link: https://www.econbiz.de/10005599485
on in the future. Banking sector problems in Russia, Turkey, and a few Latin American countries occurred within the …
Persistent link: https://www.econbiz.de/10005590869
This paper presents a new database on the timing of systemic banking crises and policy responses to resolve them. The … database covers the universe of systemic banking crises for the period 1970-2007, with detailed data on crisis containment and …. The database extends and builds on the Caprio, Klingebiel, Laeven, and Noguera (2005) banking crisis database, and is the …
Persistent link: https://www.econbiz.de/10005599378
When a country's banking system becomes more linked to the global banking network, does that system get more or less … prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M …-shaped relationship between financial stability of a country's banking sector and its interconnectedness. In particular, for banking …
Persistent link: https://www.econbiz.de/10009203546
This paper empirically analyzes the effects of a banking crisis on bank credit to the private sector for a panel of … credit function changes during a banking crisis, reflecting a generalized disruption in the stability of behavioral …, this study gives support to Third Generation Models in their ability to predict banking crises. Based on the empirical …
Persistent link: https://www.econbiz.de/10005826645
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 … in the costs of resolution. By end-1999, the critical elements to reconstruct the banking system were in place, and the …
Persistent link: https://www.econbiz.de/10005826629
multivariate probability model-and their application to studying the determinants of banking crises. The use of these models to … provide early warnings for crises is also reviewed, as are studies of the economic effects of banking crises and of the …
Persistent link: https://www.econbiz.de/10005826068
This paper uses a Binary Classification Tree (BCT) model to analyze banking crises in 50 emerging market and developing … countries during 1990-2005. The BCT identifies key indicators and their threshold values at which vulnerability to banking … risk, poor financial soundness, and macroeconomic instability are key vulnerabilities triggering banking crises. The main …
Persistent link: https://www.econbiz.de/10005599621
This paper provides a framework to assess the benefits and costs of intervening in a banking crisis. Intervention … resolution strategy. Dominant factors affecting net benefits are the relative size of the banking system and the loss liquidation …
Persistent link: https://www.econbiz.de/10005826210