Download or read book Resolving Bank Failures in Argentina written by Augusto de la Torre and published by World Bank Publications. This book was released on 2000 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: When the international financial community finally develops core principles and minimum standards for resolving bank failures, Argentina's experience should serve as an important reference in identifying best practices.
Download or read book Resolving Bank Failures in Argentina written by Augusto de la Torre and published by . This book was released on 2016 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: When the international financial community finally develops core principles and minimum standards for resolving bank failures, Argentina's experience should serve as an important reference in identifying best practices. Policies and procedures to resolve bank failures have evolved significantly in Argentina since the introduction of currency convertibility in 1991 and particularly in reaction to the 1995 tequila crisis, which exposed the inadequacy of the bank exit framework in place then. De la Torre reviews the institutional changes introduced in Argentina in 1995 to handle bank failures more effectively, particularly the creation of the deposit guarantee scheme and the procedural framework for resolving bank failures, embedded in Article 35 of the Financial Institutions Law.This framework enables the Central Bank to carve out the assets and privileged liabilities of the failing bank and transfer them to sound banks, thereby sending only a residual balance sheet to judicial liquidation. Subsequent refinements in the application of Article 35 procedures eventually led to current Argentine practice. The author examines this practice in detail by considering the handling of the recent failure of Banco Almafuerte.The author assesses a number of issues that arise from the Argentine model of bank failure resolution, taking into account both country-specific circumstances and more general concepts and concerns. He emphasizes the potential tradeoffs between reducing contagion risk, limiting moral hazard, and avoiding unnecessary destruction of asset value; the implications of priority-of-claims rules and least-cost criteria; the pros and cons of alternative organizational and institutional arrangements; and the need for legal security. Finally, he outlines two prototypical approaches to striking a balance between rules and discretion, an issue underlying much of the ongoing policy discussion on alternative bank exit frameworks.This paper - a product of the Finance Cluster, Latin America and the Caribbean Region - is part of a larger effort in the region to document best practices in bank exit frameworks.
Download or read book Systemic Financial Crises Resolving Large Bank Insolvencies written by Douglas D Evanoff and published by World Scientific. This book was released on 2005-06-27 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bank failures, like illness and taxes, are almost a certainty at some time in the future. What is less certain is their cost to and adverse implications for macroeconomies. Past failures have frequently been resolved at very high cost to society. However, the cost could be reduced through having a well-developed, credible and widely publicized plan ready to put into action by policymakers. If no such plan is ready when a large bank approaches insolvency, political pressures are likely to influence the response of regulators.Minimizing immediate, short-run costs are likely to outweigh minimizing further out, longer-run and longer-lasting costs, even if these delayed costs promise to be substantially greater. Stated differently, today will win out over tomorrow and politics will trump economics. How best to prevent such unfavorable outcomes is the major theme of this volume. The articles presented review past insolvency resolutions, draw lessons from these resolutions, discuss impediments to efficient resolutions — including cross-country, cross-regulator, and institutional challenges — and recommend how to move forward.
Download or read book Banks During the Argentine Crisis Were They All Hurt Equally Did They All Behave Equally written by Emiliano Basco and published by INTERNATIONAL MONETARY FUND. This book was released on 2006-02-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The simple answer to both questions in the title of this paper is: No. We concentrate on the three main risk elements that contributed to the banking system’s difficulties during the crisis: increasing dollarization of the balance sheet, expanding exposure to the government, and, eventually, the run on deposits. We find that there was substantial cross-bank variation in these elements—that is, not all banks were hurt equally by macroeconomic shocks. Furthermore, using panel data estimation for the 1998–2001 period, we find that depositors were able to distinguish high- from low-risk banks, and that individual banks’ exposure to currency and government default risk depended on bank fundamentals and other characteristics. Thus, not all banks behaved equally in the run-up to the crisis. Finally, our results have implications for the existence of market discipline in periods of stress and for banking regulation, which may have led banks to underestimate some of the risks they incurred.
Download or read book International Banking Crises written by Benton E. Gup and published by Bloomsbury Publishing USA. This book was released on 1999-10-30 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crises that began unexpectedly in Southeast Asia in 1997 spread rapidly around the globe, causing banks to fail, stock markets to plummet, and other newsmaking disruptions. Gup and his contributors examine these failures and crises in the main arenas where they occurred—Thailand, Indonesia, South Korea, Russia, Argentina—and provide some important answers to the critical questions these frightening events raised. The result is a readable, easily grasped study of issues relating to bank failure and the effectiveness of bank regulation, and important reading for academics and practitioners alike. In July 1997 Thailand devalued its currency. This one event sparked financial crises that spread with astonishing speed from Southeast Asia around the world to Russia. Even in the United States and South America the impact was felt. Southeast Asia had been considered a model—in fact a miracle—of economic growth. No one foresaw the crises that soon occurred there, and the severity and contagion of these crises raised questions globally: What happened? Why? And what can we do about it? Gup and his contributors offer some answers to these critical questions. Gup and his panel finally conclude that government actions were at the root of these crises. Banks were pawns in the hands of governments, and banks helped fuel the booms that ultimately burst, booms supported by investments from other countries around the world, not incidentally. Gup goes on to lay out other provocative questions, among them: How effective are bank regulations? And how do we resolve failed and insolvent banks? The result is an important contribution to the literature in banking, finance, investment, and the role government plays in these activities—a book not only for academics but for practitioners and informed laymen as well.
Download or read book Bank Insolvencies written by Gerard Caprio and published by . This book was released on 1996 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Systemic Banking Crises written by Luc Laeven and published by International Monetary Fund. This book was released on 2008-09 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provide new firm-level evidence on the effects of capital account liberalization. Based on corporate foreign-currency credit ratings data and a novel capital account restrictions index, we find that capital controls can substantially limit access to, and raise the cost of, foreign currency debt, especially for firms without foreign currency revenues. As an identification strategy, we exploit, via a difference-in-difference approach, within-country variation in firms' access to foreign currency, measured by whether or not a firm belongs to the nontradables sector. Nontradables firms benefit substantially more from capital account liberalization than others, a finding that is robust to a broad range of alternative specifications.
Download or read book Black December written by Valeriano F. García and published by World Bank Publications. This book was released on 1997 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discusses the main causes of banking distress and crises in Mexico and its aftershocks and its impact on Argentina, which was greatly affected by the Mexican collapse.
Download or read book Straining at the Anchor written by Gerardo della Paolera and published by University of Chicago Press. This book was released on 2007-12-01 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "Argentine disappointment"—why Argentina persistently failed to achieve sustained economic stability during the twentieth century—is an issue that has mystified scholars for decades. In Straining the Anchor, Gerardo della Paolera and Alan M. Taylor provide many of the missing links that help explain this important historical episode. Written chronologically, this book follows the various fluctuations of the Argentine economy from its postrevolutionary volatility to a period of unprecedented prosperity to a dramatic decline from which the country has never fully recovered. The authors examine in depth the solutions that Argentina has tried to implement such as the Caja de Conversión, the nation's first currency board which favored a strict gold-standard monetary regime, the forerunner of the convertibility plan the nation has recently adopted. With many countries now using—or seriously contemplating—monetary arrangements similar to Argentina's, this important and persuasive study maps out one of history's most interesting monetary experiments to show what works and what doesn't.
Download or read book Prudential Supervision written by Frederic S. Mishkin and published by University of Chicago Press. This book was released on 2009-02-15 with total page 379 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since banking systems play a crucial role in maintaining the overall health of the economy, the adverse effects of poorly supervised systems may be quite severe. Without some form of vigilant external oversight, banking systems could fall prey to excessive risk taking, moral hazard, and corruption. Prudential supervision provides that oversight, using government regulation and monitoring to ensure the soundness of the banking system and, by extension, the economy at large. The contributors to this thoughtful volume examine the current state of prudential supervision, focusing on fundamental issues and key pragmatic concerns. Why is prudential supervision so important? What kinds of excess must it guard against? What particular forms does it take? Which of these are the most effective deterrents against mismanagement and system overload in today's rapidly shifting financial climate? The contributors foresee a continued movement beyond simple regulatory rules in banking and toward a more active evaluation and supervision of a bank's risk management practices.
Download or read book Managing Systemic Banking Crises written by Ms.Marina Moretti and published by International Monetary Fund. This book was released on 2020-02-11 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Liquidity and Crises written by Franklin Allen and published by Oxford University Press, USA. This book was released on 2011-02-03 with total page 719 pages. Available in PDF, EPUB and Kindle. Book excerpt: One important cause of the 2007-2009 crisis was illiquidity combined with exposure of many financial institutions to liquidity needs. But what is liquidity and why is it so important for financial institutions to command enough liquidity? This book brings together classic articles and recent contributions to this important field.
Download or read book Systemic Financial Crises written by Patrick Honohan and published by Cambridge University Press. This book was released on 2005-09-26 with total page 412 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes government policies to contain and resolve systemic financial crises.
Download or read book Deposit Insurance Around the World written by Aslı Demirgüç-Kunt and published by MIT Press. This book was released on 2008 with total page 415 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explicit deposit insurance (DI) is widely held to be a crucial element of modern financial safety nets. This book draws on an original cross-country dataset on DI systems and design features to examine the impact of DI on banking behavior and assess the policy complications that emerge in developing countries.
Download or read book The Crisis that was Not Prevented written by Jan Joost Teunissen and published by . This book was released on 2003 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Banking Supervision Systemic Bank Restructuring written by Kenneth Kaoma Mwenda and published by Routledge. This book was released on 2000-11-22 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 2001. Routledge is an imprint of Taylor & Francis, an informa company.
Download or read book Resolution of Failed Banks by Deposit Insurers written by Thorsten Beck and published by World Bank Publications. This book was released on 2006 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: "There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role of the deposit insurer. The authors use quantitative analysis for 57 countries and discuss specific country cases to illustrate this variation. Using data for over 1,700 banks across 57 countries, they show that banks in countries where the deposit insurer has the responsibility of intervening failed banks and the power to revoke membership in the deposit insurance scheme are more stable and less likely to become insolvent. Involvement of the deposit insurer in bank failure resolution thus dampens the negative effect that deposit insurance has on banks' risk taking. "--World Bank web site.
