Resolving Systemic Financial Crisis: Policies and Institutions
The authors analyze the role of
institutions in resolving systemic banking crises for a
broad sample of countries. Banking crises are fiscally
costly, especially when policies like substantial liquidity
support, explicit government guarantees on financial
institutions liabilities, and forbearance from prudential
regulations are used. Higher fiscal outlays do not, however,
accelerate the recovery from a crisis. Better
institutions less corruption, improved law and order, legal
system, and bureaucracy do. The authors find these results
to be relatively robust to estimation techniques, including
controlling for the effects of a poor institutional
environment on the likelihood of financial crisis and the
size of fiscal costs. Their results suggest that countries
should use strict policies to resolve a crisis and use the
crisis as an opportunity to implement medium-term structural
reforms, which will also help avoid future systemic crises.
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Bibliographic Details
| Main Authors: |
Claessens, Constantijn A.,
Klingebiel, Daniela,
Laeven, Luc |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, D.C.
2004-08
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| Subjects: | ACCOUNTING,
ADVERSE EFFECTS,
ASSET BUBBLES,
ASSET PRICES,
BAILOUT COSTS,
BALANCE SHEETS,
BANK CREDIT,
BANKING CRISIS,
BANKING SECTOR,
BANKING SYSTEM,
BANKING SYSTEMS,
BANKRUPTCY,
BLANKET DEPOSIT GUARANTEES,
CAPITAL FLOWS,
CENTRAL BANKS,
CLEARING SYSTEMS,
CONTAINMENT PHASE,
CREDIBILITY,
CREDIT BOOMS,
CREDITOR,
CURRENCY,
CURRENCY CRISES,
DEBT OVERHANG,
DEBT RELIEF,
DEPOSIT INSURANCE,
DEPOSITORS,
DEPOSITS,
EARNINGS,
ECONOMIC COSTS,
ECONOMIC GROWTH,
ECONOMIC OUTLOOK,
ECONOMIC RECOVERY,
EMERGING ECONOMIES,
EMERGING MARKETS,
EMPIRICAL ANALYSES,
EMPIRICAL ANALYSIS,
EXTERNAL FINANCE,
FINANCIAL CRISIS,
FINANCIAL DISTRESS,
FINANCIAL INSTITUTIONS,
FINANCIAL INTERMEDIATION,
FINANCIAL RESTRUCTURING,
FINANCIAL SECTOR,
FINANCIAL SECTOR DEVELOPMENT,
FINANCIAL SECTOR RESTRUCTURING,
FINANCIAL SYSTEM,
FINANCIAL SYSTEMS,
FISCAL COST,
FISCAL COSTS,
FOREIGN CURRENCY,
GOVERNMENT GUARANTEES,
INFLATION,
INSOLVENCY,
INSTITUTIONAL DEVELOPMENT,
INSTITUTIONAL ENVIRONMENT,
INSTITUTIONAL FRAMEWORK,
INTEREST RATES,
INTERNATIONAL LIQUIDITY, |
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| Online Access: | http://documents.worldbank.org/curated/en/2004/08/5104607/resolving-systemic-financial-crisis-policies-institutions
https://hdl.handle.net/10986/14149
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