Deposit Dollarization : What's Happening, What Can Be Done?
Around the world-not just in Latin America -central bankers are looking uneasily at the growing share of foreign currency-denominated deposits in their banking systems. They have a sense that these deposits may not be a good thing, or at least may be a symptom of weaknesses in their financial structures or policies. In some countries spontaneous dollarization of the banking system has long been extensive and well known; in other countries it has been a creeping affair.
Summary: | Around the world-not just in Latin
America -central bankers are looking uneasily at the growing
share of foreign currency-denominated deposits in their
banking systems. They have a sense that these deposits may
not be a good thing, or at least may be a symptom of
weaknesses in their financial structures or policies. In
some countries spontaneous dollarization of the banking
system has long been extensive and well known; in other
countries it has been a creeping affair. |
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