Lessons from World Bank Group Responses to Past Financial Crises

A worldwide financial crisis of enormous magnitude continues to unfold rapidly. Unlike other crises in recent decades, the current episode is rooted in industrial countries' financial systems and is affecting low-income and middle-income countries (MICs) alike. Defaults on securitized sub-prime mortgages as a real estate market bubble burst led to failures or near-failures of several large financial institutions and a collapse of inter-bank and commercial paper markets. A tightening of credit, combined with declining consumer confidence, has brought on worldwide recession with growing unemployment, and many fear that the downturn will be severe and protracted. At the same time, the rapidly multiplying signs of contraction are prompting strong responses, including fiscal stimulus packages and reductions in benchmark lending rates, on the part of several of the affected developed countries. The Bank Group is well placed to help mitigate the impact of the current crisis with financing and advisory services, and its clients are already requesting increased support. A rapid, high-quality response that combines financial and advisory support can do much to ease the inevitable ramifications of the crisis. Lessons from evaluations of previous Bank Group responses to past crises can help inform the response to the current crisis in order to increase its effectiveness.

Bibliographic Details

Main Author:	Independent Evaluation Group
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009
Subjects:	ACCOUNTABILITY, ACCOUNTING, ADVERSE EFFECTS, ADVISORY SERVICES, BALANCE SHEET, BANK LENDING, BANKING CRISES, BANKING CRISIS, BANKING INVESTMENTS, BANKING SECTOR, BANKING SYSTEM, BANKING SYSTEMS, BANKRUPTCY, BANKS, BENEFICIARIES, BID, BONDHOLDERS, BORROWING, BROKER, BUSINESS OPPORTUNITIES, CAPACITY DEVELOPMENT, CIVIL SERVICE, CLIENT COUNTRY, COMMERCIAL BANK, COMMERCIAL BANK LOANS, COMMERCIAL BANKS, COMMERCIAL PAPER, COMMERCIAL PAPER MARKETS, CONFLICTS OF INTEREST, CONSOLIDATION, CONSUMER CONFIDENCE, CONTINGENCY PLANS, CORPORATE FINANCE, CORPORATE GOVERNANCE, COUNTRY CREDIT, CREDIT BUREAUS, CREDIT NEEDS, CREDIT RATING, CREDIT RATING AGENCIES, CREDIT RATINGS, CREDITOR, CREDITORS, CREDITS, CRISIS COUNTRIES, CRISIS LENDING, DEBT, DEBT ISSUES, DEBTS, DEFAULTS, DEMONSTRATION EFFECTS, DERIVATIVE, DERIVATIVE INSTRUMENTS, DEVALUATION, DEVELOPING COUNTRIES, DISBURSEMENTS, DISTRESSED BANKS, ECONOMIC CONDITIONS, ECONOMIC CRISES, ECONOMIC DIFFICULTIES, ECONOMIC GROWTH, EMERGING MARKETS, EMPLOYMENT, ENVIRONMENTAL PROTECTION, EQUITY CAPITAL, EQUITY FUND, EQUITY FUNDING, EQUITY FUNDS, EQUITY INVESTMENT, EQUITY INVESTMENTS, EXCHANGE RATE, EXPENDITURE, EXPORT CREDITS, EXPORT GROWTH, EXPOSURE, EXTERNAL DEBT, EXTERNAL FINANCE, EXTERNAL FINANCING, EXTERNAL SHOCK, FINANCE COMPANIES, FINANCE CORPORATION, FINANCIAL ASSISTANCE, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DIFFICULTIES, FINANCIAL DISTRESS, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL REFORMS, FINANCIAL RESTRUCTURING, FINANCIAL SECTOR, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SECTOR REFORM, FINANCIAL SECTOR REFORMS, FINANCIAL SECTORS, FINANCIAL STRESS, FINANCIAL SUPPORT, FINANCIAL SYSTEMS, FISCAL CONDITIONS, FISCAL POLICY, FISCAL REFORM, FISCAL REFORMS, FOREIGN BANK, FOREIGN BANKS, FOREIGN DEBT, FOREIGN DEBTS, FUTURES, FUTURES CONTRACTS, GLOBAL TRADE, GOVERNANCE PRACTICES, GOVERNMENT ACTION, GROWTH OPPORTUNITIES, GUARANTEE AGENCY, HOST GOVERNMENTS, HOUSEHOLDS, ILLIQUIDITY, INCOME, INDUSTRIAL COUNTRIES, INFRASTRUCTURE PROJECTS, INSTITUTIONAL REFORM, INSURANCE, INTERNAL AUDIT, INTERNATIONAL ACCOUNTING STANDARDS, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTMENT CLIMATE, INVESTMENT LOAN, INVESTMENT OPPORTUNITIES, INVESTMENT PORTFOLIO, LABOR MARKET, LARGE BORROWERS, LEGAL FRAMEWORK, LIQUIDITY ASSISTANCE, LOAN, LOAN FINANCING, LOAN LOSS PROVISIONS, LOAN SYNDICATIONS, LOCAL CURRENCY, LOCAL MARKET, LOW-INCOME COUNTRIES, MACROECONOMIC CONDITIONS, MACROECONOMIC CRISIS, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MANAGEMENT INFORMATION SYSTEMS, MARKET CONDITIONS, MARKET CONFIDENCE, MICROENTERPRISES, MIDDLE-INCOME COUNTRIES, MONETARY FUND, MORTGAGES, NEW BUSINESS, NEW COMPANIES, NUTRITION, OPPORTUNITY COST, OUTPUT, OUTPUTS, PENSION, PENSION REFORM, POLICY RESPONSE, POLITICAL RISK, PORTFOLIO, PORTFOLIO QUALITY, POVERTY ALLEVIATION, PRIVATE FINANCING, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PROTECTION MEASURES, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, RATING AGENCIES, REAL ESTATE, REAL SECTOR, RECAPITALIZATION, RECESSION, REGIONAL BANKS, REGULATORY CAPACITY, REGULATORY INFRASTRUCTURE, RENEGOTIATION, RENEWABLE ENERGY, REPUTATION, RESERVES, RETURN, RISK MANAGEMENT, RISK MITIGATION, RISK PERCEPTIONS, RISK TAKING, SAFETY NET, SHAREHOLDER, SHAREHOLDERS, SHORT-TERM FINANCE, SHORT-TERM LIQUIDITY, SMALL BORROWERS, SOCIAL INVESTMENT, SOCIAL PROTECTION, SOCIAL SAFETY NET, SOCIAL SAFETY NETS, SOCIAL SECURITY, SOURCES OF FINANCE, STATE ENTERPRISES, STRUCTURAL ADJUSTMENT, SYSTEMIC RISKS, TRACK RECORD, TRADE FINANCE, TRADE FINANCING, TRADE LIBERALIZATION, TRADING, TRANSITION ECONOMIES, TRANSPARENCY, TREASURY, UNEMPLOYMENT, UNION,
Online Access:	http://documents.worldbank.org/curated/en/149131468339538525/Lessons-from-World-Bank-Group-responses-to-past-financial-crises https://hdl.handle.net/10986/28065
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