In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the regulator can rely on the funds concentration effect to save long-term investment projects. Some banks are forced into bankruptcy with the result that other banks obtain more...

Why do banks fail? We create a panel covering most commercial banks from 1865 through 2023 to study the history of failing banks in the United States. Failing banks are characterized by rising asset losses, deteriorating solvency, and an increasing reliance on expensive non-core funding....

This paper describes recently established deposit insurance systems, identifying emerging trends. In line with previous IMF work on the subject, it argues against the development of ""best practices"" applicable to all systems. Rather, it stresses the importance of incorporating each country’s...

This technical assistance report on The Bahamas focuses on operationalizing the new bank resolution framework and amended deposit insurance legislation-second mission. The Bahamas has made considerable progress in developing the legal framework, infrastructure, and key tools for an effective...

This technical assistance report on The Bahamas analyses operationalizing the new bank resolution framework and amended deposit insurance legislation-second mission. The Central Bank of the Bahamas (CBOB) has made good progress in implementing recovery plans for the domestic systemically...

This technical assistance report on The Bahamas analyses operationalizing the new bank resolution framework and amended deposit insurance legislation. The Bahamas has made considerable progress in developing the infrastructure needed for an effective bank recovery and resolution regime. The...

Banks guarantee international trade through letters of credit. This paper analyzes what happens to trade when the critical role of banks as trade guarantors is compromised. Using the case of the Greek capital controls in 2015, the events around which led to a massive loss of confidence in the...