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Author: Edward J. Kane Publisher: ISBN: Category : Languages : en Pages : 63
Book Description
Kane explains how differences in the informational and contracting environments of countries affect the optimal design of their financial safety nets and their optimal strategies for managing financial crises. He explains how to design and operate safety nets at minimum cost to taxpayers and well-managed banks in countries whose informational and contracting technologies differ. His basic premise is that optimal regulation is not a one-size-fits-all proposition.A country's safety net should be transparent, deterrent to too much risk-taking, and accountable, but Kane shows large differences across countries in the transparency and deterrence banks afford their depositors, highlighting why the design of safety nets must allow for differences in the enforceability of private contracts.The weaker a country's informational, ethical, and corporate governance environment, the more a wholly governmental system of explicit deposit guarantees is apt to undermine bank safety and stability. How a country`s safety net evolves depends on the ability of the private and public sectors to value banks, discipline risk-taking, and resolve financial difficulties promptly. And political accountability is essential if the public part of these tasks is to evolve effectively and efficiently.As a rule of thumb, safety-net managers should avoid either subsidizing or taxing bank risk-taking, says Kane. Even if analysts could formulate a beneficial tax or subsidy rule, it is unlikely that channeling the effect through a government-run deposit insurance system that fails to account publicly for the size of taxpayers' stake could improve upon more straightforward arrangements.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to design financial safety nets for developing countries. The study was funded by the Bank's Research Support Budget under the research project Deposit Insurance (RPO 682-90). The author may be contacted at [email protected].
Author: Edward J. Kane Publisher: ISBN: Category : Languages : en Pages : 63
Book Description
Kane explains how differences in the informational and contracting environments of countries affect the optimal design of their financial safety nets and their optimal strategies for managing financial crises. He explains how to design and operate safety nets at minimum cost to taxpayers and well-managed banks in countries whose informational and contracting technologies differ. His basic premise is that optimal regulation is not a one-size-fits-all proposition.A country's safety net should be transparent, deterrent to too much risk-taking, and accountable, but Kane shows large differences across countries in the transparency and deterrence banks afford their depositors, highlighting why the design of safety nets must allow for differences in the enforceability of private contracts.The weaker a country's informational, ethical, and corporate governance environment, the more a wholly governmental system of explicit deposit guarantees is apt to undermine bank safety and stability. How a country`s safety net evolves depends on the ability of the private and public sectors to value banks, discipline risk-taking, and resolve financial difficulties promptly. And political accountability is essential if the public part of these tasks is to evolve effectively and efficiently.As a rule of thumb, safety-net managers should avoid either subsidizing or taxing bank risk-taking, says Kane. Even if analysts could formulate a beneficial tax or subsidy rule, it is unlikely that channeling the effect through a government-run deposit insurance system that fails to account publicly for the size of taxpayers' stake could improve upon more straightforward arrangements.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to design financial safety nets for developing countries. The study was funded by the Bank's Research Support Budget under the research project Deposit Insurance (RPO 682-90). The author may be contacted at [email protected].
Author: Edward James Kane Publisher: ISBN: Category : Banks and banking Languages : en Pages : 72
Book Description
For optimal regulation, one size does not fit all. Differences in countries' informational and contracting environments (in the transparency of information, in protection for counterparties, and in political accountability), influence the design of their financial safety nets and their strategies for managing the breakdown of those nets.
Author: Aslı Demirgüç-Kunt Publisher: World Bank Publications ISBN: 2311540211 Category : Banks and banking Languages : en Pages : 52
Book Description
It is difficult to design and implement an effective safety net for banks, because overgenerous protection of banks may introduce a risk-enhancing moral hazard and destabilize the very system it is meant to protect. The safety net that policymakers design must provide the right mix of market and regulatory discipline, enough to protect depositors without unduly undermining market discipline on banks.
Author: Antonio Estache Publisher: World Bank Publications ISBN: Category : Desempleo - Brasil Languages : en Pages : 26
Book Description
When Brazil's Federal Railway was privatized, the team in charge of privatization made a significant effort to complement the incentive for voluntary reduction with an elaborate menu of training options. How did it work?
Author: Estelle James Publisher: World Bank Publications ISBN: Category : Annuities Languages : en Pages : 36
Book Description
"The provision of annuities and other benefits during the decumulation phase DC pension plans raises major policy issues. As the private markets for annuities and disability benefits are not well developed even in the most advanced OECD countries, the resolution of these issues is likely to be a gradual process, with both countries and markets learning through experience" -- title page.
Author: Blaikie Walter Biggar Publisher: World Bank Publications ISBN: 1017053057 Category : Biography & Autobiography Languages : en Pages : 70
Book Description
This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work is in the "public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
Author: Gaurav Datt Publisher: World Bank Publications ISBN: Category : El Niño Current Languages : en Pages : 46
Book Description
In terms of its impact on poverty, the recent economic crisis in the Philippines was more of an El Niño phenomenon than a financial crisis.
Author: Jan Dehn Publisher: World Bank Publications ISBN: Category : Agricultural prices Languages : en Pages : 66
Book Description
The author estimates the effects on growth of commodity price shocks, and uncertainty within an established empirical growth model. Ex-post shocks, and ex-ante uncertainty have been treated in the empirical literature as if they were synonymous. But they are distinct concepts, and it is both theoretically, and empirically inappropriate to treat them as synonymous. He shows that the interaction between policy, and aid is robust to the inclusion of variables capturing commodity price movements. More important, his approach departs in three ways from earlier empirical studies of the subject: 1) It deals with issues of endogeneity, without incurring an excessive loss of efficiency. 2) It defines the dependent variable to allow an assessment of the longer-term implications of temporary trade shocks. 3) It imposes no priors on how commodity price movements affect growth, but compares and contrasts a range of competing shock, and uncertainty specifications. The author resolves the disagreement about the long-run effect of positive shocks on growth, finding that positive shocks have no long-run impact on growth (that windfalls from trade shocks do not translate into sustainable increases in income). He shows that negative shocks have large, highly significant, and negative effects on growth, but that commodity price uncertainty does not affect growth.
Author: World Bank Publisher: World Bank Publications ISBN: 9780821350423 Category : Political Science Languages : en Pages : 186
Book Description
This publication is a compilation of reports on research projects initiated, under way, or completed in fiscal year 2001 (July 1, 2000 through June 30, 2001). The abstracts cover 150 research projects from the World Bank and grouped under 11 major headings including poverty and social development, health and population, education, labor and employment, environment, infrastructure and urban development, and agriculture and rural development. The abstracts detail the questions addressed, the analytical methods used, the findings to date and their policy implications. Each abstract identifies the expected completion date of each project, the research team, and reports or publications produced.
Author: Edward J. Kane
Author: Edward J. Kane
Author: Edward James Kane
Author: Aslı Demirgüç-Kunt
Author: 
Author: Antonio Estache
Author: Estelle James
Author: Blaikie Walter Biggar
Author: Gaurav Datt
Author: Jan Dehn
Author: World Bank