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Author: Nicolas Guerry Publisher: ISBN: Category : Languages : en Pages : 36
Book Description
Recessions associated with banking crises are deeper and longer than other recessions. While banking crises are often believed to reflect defects in regulation and supervision, regulatory and supervisory frameworks may also determine the shape of subsequent recoveries. Combining new databases covering 147 banking crises between 1970-2011 and banking regulation in 180 countries, this study investigates the relationship between output losses following systemic banking crises, and banking regulation and supervision. Our main finding shows that the presence of highly independent supervisors is associated with more severe crises. We also found that higher restrictions on financial conglomerates reduce the severity of crises in several specifications. Finally, we found evidence suggesting that the same regulatory and supervisory frameworks are associated with different outcomes in different levels of economic development.
Author: Nicolas Guerry Publisher: ISBN: Category : Languages : en Pages : 36
Book Description
Recessions associated with banking crises are deeper and longer than other recessions. While banking crises are often believed to reflect defects in regulation and supervision, regulatory and supervisory frameworks may also determine the shape of subsequent recoveries. Combining new databases covering 147 banking crises between 1970-2011 and banking regulation in 180 countries, this study investigates the relationship between output losses following systemic banking crises, and banking regulation and supervision. Our main finding shows that the presence of highly independent supervisors is associated with more severe crises. We also found that higher restrictions on financial conglomerates reduce the severity of crises in several specifications. Finally, we found evidence suggesting that the same regulatory and supervisory frameworks are associated with different outcomes in different levels of economic development.
Author: Publisher: World Bank Publications ISBN: Category : Business & Economics Languages : en Pages : 40
Book Description
A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present-day economies. The paper reviews the two basic methodologies adopted in cross-country empirical studies-the signals approach and the 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 policies to forestall them. The paper concludes by identifying directions for future research.
Author: Apanard Penny Prabha Publisher: ISBN: Category : Languages : en Pages : 28
Book Description
Using a cross-section time-series of 47 banking crisis episodes in 35 industrial and emerging market economies between the 1970s and 2003, this study analyzes the relationship between banking regulation and supervision, and the severity of banking crises measured in terms of the magnitude of output loss. The empirical results show that countries that provide comprehensive deposit insurance coverage and enforce strict bank capital adequacy requirements experience a smaller output cost of crises. Restrictions on bank activities also influence the severity of crises. The results, however, do not suggest that there is a significant impact of bank supervision. In addition, there is no robust evidence that the magnitude of the output cost of crises depends on the extent of banks' financial inter-mediation.
Author: International Monetary Fund Publisher: International Monetary Fund ISBN: 1498342434 Category : Business & Economics Languages : en Pages : 88
Book Description
This paper explores how banking sector developments and characteristics influence the propagation of risks from the banking sector to sovereign debt, including how they affect the extent of fiscal costs of banking crises when those occur. It then proposes practices and policies for the fiscal authorities to help manage the risks and enhance crisis preparedness.
Author: Mr.Luc Laeven Publisher: International Monetary Fund ISBN: 1484377044 Category : Business & Economics Languages : en Pages : 49
Book Description
This paper updates the database on systemic banking crises presented in Laeven and Valencia (2008, 2013). Drawing on 151 systemic banking crises episodes around the globe during 1970-2017, the database includes information on crisis dates, policy responses to resolve banking crises, and the fiscal and output costs of crises. We provide new evidence that crises in high-income countries tend to last longer and be associated with higher output losses, lower fiscal costs, and more extensive use of bank guarantees and expansionary macro policies than crises in low- and middle-income countries. We complement the banking crises dates with sovereign debt and currency crises dates to find that sovereign debt and currency crises tend to coincide or follow banking crises.
Author: Ms.Marina Moretti Publisher: International Monetary Fund ISBN: 1513512277 Category : Business & Economics Languages : en Pages : 88
Book Description
This paper updates the IMF’s work on general principles, strategies, and techniques from an operational perspective in preparing for and managing systemic banking crises in light of the experiences and challenges faced during and since the global financial crisis. It summarizes IMF advice concerning these areas from staff of the IMF Monetary and Capital Markets Department (MCM), drawing on Executive Board Papers, IMF staff publications, and country documents (including program documents and technical assistance reports). Unless stated otherwise, the guidance is generally applicable across the IMF membership.
Author: Mr.David Amaglobeli Publisher: International Monetary Fund ISBN: 1513592319 Category : Business & Economics Languages : en Pages : 43
Book Description
This paper examines the risk factors associated with fiscal costs of systemic banking crises using cross-country data. We differentiate between immediate direct fiscal costs of government intervention (e.g., recapitalization and asset purchases) and overall fiscal costs of banking crises as proxied by changes in the public debt-to-GDP ratio. We find that both direct and overall fiscal costs of banking crises are high when countries enter the crisis with large banking sectors that rely on external funding, have leveraged non-financial private sectors, and use guarantees on bank liabilities during the crisis. The better quality of banking supervision and the higher coverage of deposit insurance help, however, alleviate the direct fiscal costs. We also identify a possible policy trade-off: costly short-term interventions are not necessarily associated with larger increases in public debt, supporting the thesis that immediate intervention may be actually cost-effective over time.
Author: World Bank Publisher: World Bank Publications ISBN: 1464814961 Category : Business & Economics Languages : en Pages : 281
Book Description
Over a decade has passed since the collapse of the U.S. investment bank, Lehman Brothers, marked the onset of the largest global economic crisis since the Great Depression. The crisis revealed major shortcomings in market discipline, regulation and supervision, and reopened important policy debates on financial regulation. Since the onset of the crisis, emphasis has been placed on better regulation of banking systems and on enhancing the tools available to supervisory agencies to oversee banks and intervene speedily in case of distress. Drawing on ten years of data and analysis, Global Financial Development Report 2019/2020 provides evidence on the regulatory remedies adopted to prevent future financial troubles, and sheds light on important policy concerns. To what extent are regulatory reforms designed with high-income countries in mind appropriate for developing countries? What has been the impact of reforms on market discipline and bank capital? How should countries balance the political and social demands for a safety net for users of the financial system with potentially severe moral hazard consequences? Are higher capital requirements damaging to the flow of credit? How should capital regulation be designed to improve stability and access? The report provides a synthesis of what we know, as well as areas where more evidence is still needed. Global Financial Development Report 2019/2020 is the fifth in a World Bank series. The accompanying website tracks financial systems in more than 200 economies before, during, and after the global financial crisis (http://www.worldbank.org/en/publication/gfdr) and provides information on how banking systems are regulated and supervised around the world (http://www.worldbank.org/en/research/brief/BRSS).
Author: Jose de Luna-Martinez Publisher: World Bank Publications ISBN: 9780821347232 Category : Business & Economics Languages : en Pages : 66
Book Description
WBI Learning Resources Series. Water is a vital element for agricultural production and for economic development in general. However, the spatial and temporal distribution of water in Mexico restrains its use. Because of this distribution, it has been necessary to build a large infrastructure to capture, store, and allot this element among water users. Around the world, countries that once promoted more government involvement in irrigation management are adopting new policies that do just the opposite, creating incentives for farmers to take over the management of operations and maintenance, while government agencies focus on improving the management of water at the main system level. Is this just another management fad; or will the pendulum that is now swinging toward greater management control by farmers soon swing back the other way, toward greater state control? This volume reports on four countries where the state's role in irrigation management has undergone fundamental change and where the result has been a much greater management role for farmers. These studies address the political antecedents of participatory irrigation management (PIM) policies, the process of implementing the policies, and the second-generation challenges of sustaining PIM. These experiences will prove useful to policymakers and irrigation professionals who are facing similar challenges in their own countries.
Author: Daniela Klingebiel Publisher: World Bank Publications ISBN: 9780821350560 Category : Business & Economics Languages : en Pages : 68
Book Description
This volume provides two recent analyses of government responses to financial crises; they have been developed in the light of the recent East Asian crisis, but also draw on experiences from other regions. Issues discussed relate to: the tradeoffs involved in public policies for systemic financial and corporate sector restructuring; and the use of cross-country evidence to determine whether specific crisis containment and resolution policies effect the fiscal costs of resolving a crisis. The book also presents information on 113 systemic banking crises that have occurred in 93 countries since the 1970s, as well as 50 borderline or non-systemic banking crises in 44 countries during the same period.
Author: Nicolas Guerry
Author: Nicolas Guerry
Author: 
Author: Apanard Penny Prabha
Author: International Monetary Fund
Author: Mr.Luc Laeven
Author: Ms.Marina Moretti
Author: Mr.David Amaglobeli
Author: World Bank
Author: Jose de Luna-Martinez
Author: Daniela Klingebiel