A Credit Crunch? a Case Study of Finland in the Aftermath of the Banking Crisis PDF Download
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Author: Ceyla Pazarbasioglu Publisher: International Monetary Fund ISBN: 1451855664 Category : Business & Economics Languages : en Pages : 18
Book Description
This paper estimates a disequilibrium model of credit supply and demand to evaluate whether there was a credit crunch in Finland following the banking crisis of 1991-92. Empirical analysis suggests that the marked reduction in bank lending was mainly in reaction to a cyclical decline in credit demand, likely exacerbated by the high level of indebtedness of the borrowers. It also appears that banks became less willing to supply credit during periods associated with a deterioration in asset quality, and reduced profits due to declining regulatory protection from competition, and a need to increase capital adequacy levels.
Author: Ceyla Pazarbasioglu Publisher: International Monetary Fund ISBN: 1451855664 Category : Business & Economics Languages : en Pages : 18
Book Description
This paper estimates a disequilibrium model of credit supply and demand to evaluate whether there was a credit crunch in Finland following the banking crisis of 1991-92. Empirical analysis suggests that the marked reduction in bank lending was mainly in reaction to a cyclical decline in credit demand, likely exacerbated by the high level of indebtedness of the borrowers. It also appears that banks became less willing to supply credit during periods associated with a deterioration in asset quality, and reduced profits due to declining regulatory protection from competition, and a need to increase capital adequacy levels.
Author: Mr.Burkhard Drees Publisher: International Monetary Fund ISBN: 9781557757005 Category : Business & Economics Languages : en Pages : 52
Book Description
This study examines the banking crises in Finland, Norway and Sweden, which took place in the early 1990s, and draws some policy conclusions from their experiences. One key conclusion is that factors in addition to business cycle effects explain the Nordic countries financial problems. Although the timing of the deregulation in all three countries coincided with a strongly expansionary macroeconomic momentum, the main reasons for the banking crises were the delayed policy responses, the structural characteristics of the financial systems, and the banks inadequate internal risk-management controls.
Author: Mr.Stijn Claessens Publisher: International Monetary Fund ISBN: 1475561008 Category : Business & Economics Languages : en Pages : 66
Book Description
This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.
Author: Mr.Sami Ben Naceur Publisher: International Monetary Fund ISBN: 1484354478 Category : Business & Economics Languages : en Pages : 39
Book Description
The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this requirement may have caused a “credit crunch,” a significant reduction in the supply of credit. We investigate the direct link between the implementation of the Basel I Accord and lending activities, using a data set spanning annual observations covering 1989–2004 for banks in Egypt, Jordan, Lebanon, Morocco, and Tunisia. The results provide clear support for a significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital adequacy ratios, banks expanded credit and asset growth. Credit growth appears to be driven by demand fluctuations attributed to real growth, cost of borrowing, and exchange rate risk. Overall, the effects of macroeconomic variables, in contrast to capital adequacy, appear to be more dominant in determining credit growth, regardless of the capital adequacy ratio, and regardless of variation across banks by nationality, ownership, and listing.
Author: Mr.David Woo Publisher: International Monetary Fund ISBN: 1451841884 Category : Business & Economics Languages : en Pages : 29
Book Description
The seeming failure of loose monetary policy to reactivate Japan’s economy has led some observers to suggest that the usual credit channels through which monetary policy affects the real economy are blocked, and this because of a pervasive shortage of bank capital that has induced a leftward shift in the supply of bank credit: the so called credit crunch hypothesis. This paper finds support for the hypothesis in the 1997 bank data—a year during which the landscape of the Japanese financial system was changed fundamentally—but finds no, or even contrary, evidence, for most of the 1990’s.
Author: M. Ayhan Kose Publisher: World Bank Publications ISBN: 1464815453 Category : Business & Economics Languages : en Pages : 403
Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Author: International Monetary Fund. Research Dept. Publisher: International Monetary Fund ISBN: 1451930968 Category : Business & Economics Languages : en Pages : 204
Book Description
This paper deals with liberalization and the evolution of output during the transition from plan to market. It explains why strong liberalization leads to a comparatively steep fall in output early in the transition, but a relatively strong recovery later on. Because it takes time to restructure the capital stock inherited from the old system, liberalization initially leads to transitional unemployment of capital and the contraction of the old enterprise sector. By making room quickly for the new, more efficient enterprises, however, liberalization also sets the stage for recovery and a much higher level of income in the medium term. [JEL E23, P21, P27, P52]
Author: Andres Velasco Publisher: Brookings Institution Press ISBN: 9780815714576 Category : Business & Economics Languages : en Pages : 284
Book Description
This semiannual journal from the Latin American and Caribbean Economic Association (LACEA) provides a forum for influential economists and policymakers to share high-quality research directly applied to policy issues within and among those countries.Contents Include: The Impact of the Basel Accord on Bank Credit Growth: A Cross-Country Study Ralph Chami and Adolfo Barajas (IMF) and Thomas Cosimano (University of Notre DameDistributional Effects of Crises: The Financial Channel Marina Halac and Sergio L. Schmukler (World Bank)Growth and Adjustment in East Asia and Latin America José De Gregorio (Banco Central de Chile) and Jong-Wha Lee (Korea University) Labor Market Adjustment in Chile Kevin Cowan, Alejandro Micco, and Carmen Pages (IADB)A Menu of Minimum Wage Variables for Evaluating Wage and Employment Effects: Evidence from Brazil Sara Lemos (University of Leicester)
Author: International Monetary Fund. Research Dept. Publisher: International Monetary Fund ISBN: 1451973462 Category : Business & Economics Languages : en Pages : 120
Book Description
This paper studies the case of Mexico to examine determinants of banking system fragility. The paper tests empirically the proposition that bank fragility is determined by bank-specific factors, macroeconomic conditions, and potential contagion effects. The methodology allows the variables that determine bank failure to differ from those that influence banks’ time to failure (or survival rate). Based on the indicators of fragility of individual banks, the paper constructs an index of fragility for the banking system. The framework is applied to the Mexican financial crisis that began in 1994.
Author: Ceyla Pazarbasioglu
Author: Ceyla Pazarbasioglu
Author: Mr.Burkhard Drees
Author: 
Author: Mr.Stijn Claessens
Author: Mr.Sami Ben Naceur
Author: Mr.David Woo
Author: M. Ayhan Kose
Author: International Monetary Fund. Research Dept.
Author: Andres Velasco
Author: International Monetary Fund. Research Dept.