Exogenous Shocks Deposit Runs And Bank Soundness

Author : Mr.Mario I. Bléjer
Publisher : International Monetary Fund
ISBN 13 : 1451951736
Total Pages : 32 pages
Book Rating : 4.38/5 ( download)

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Download or read book Exogenous Shocks, Deposit Runs and Bank Soundness written by Mr.Mario I. Bléjer and published by International Monetary Fund. This book was released on 1997-07-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a model where all banks are initially solvent, an exogenous shock affects confidence, causing a flight from deposits into domestic and foreign currency. Real interest rates increase unexpectedly, affecting firms and raising the share of the banks’ nonperforming assets. This increase causes genuine solvency problems and accelerates the bank run. Policy simulations show that compensatory monetary policy (increasing currency supply when deposits fall) mitigates the bank run but causes inflation and external imbalances. Combining compensatory monetary policy with tight fiscal policies also slows the bank run and mitigates insolvency, but at a lower macroeconomic cost. A devaluation is shown to have little positive impact.

Author : Mario I. Blejer
Publisher :
ISBN 13 :
Total Pages : 31 pages
Book Rating : 4.79/5 ( download)

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Download or read book Exogenous Shocks, Deposit Runs and Bank Soundness written by Mario I. Blejer and published by . This book was released on 2006 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a model where all banks are initially solvent, an exogenous shock affects confidence, causing a flight from deposits into domestic and foreign currency. Real interest rates increase unexpectedly, affecting firms and raising the share of the banks` nonperforming assets. This increase causes genuine solvency problems and accelerates the bank run. Policy simulations show that compensatory monetary policy (increasing currency supply when deposits fall) mitigates the bank run but causes inflation and external imbalances. Combining compensatory monetary policy with tight fiscal policies also slows the bank run and mitigates insolvency, but at a lower macroeconomic cost. A devaluation is shown to have little positive impact.

Author : Mario I. Blejer
Publisher :
ISBN 13 :
Total Pages : 31 pages
Book Rating : 4.29/5 ( download)

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Download or read book Exogenous shock, deposit runs and bank soundness written by Mario I. Blejer and published by . This book was released on 1997 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mario I. Blejer
Publisher :
ISBN 13 :
Total Pages : 31 pages
Book Rating : 4.87/5 ( download)

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Download or read book Exogenous Shocks, Deposit Runs and Bank Soundness: a Macroecmic Framework written by Mario I. Blejer and published by . This book was released on 1997 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Blejer
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.00/5 ( download)

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Download or read book Exogenous Shocks, Deposit Run and Bank Soundness written by Blejer and published by . This book was released on 1997 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mario I. Blejer
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.48/5 ( download)

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Download or read book Exogenous Shocks, Contagion, and Bank Soundness written by Mario I. Blejer and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In a model where all banks are initially solvent, an exogenous shock affects confidence, causing a flight from deposits into domestic and foreign currency. Real interest rates increase unexpectedly, affecting firms and raising the share of the banks nonperforming assets. This contagion causes a bank run. Simulations show that compensatory monetary policy mitigates the bank run but causes macroeconomic imbalances. Combining compensatory monetary policy with tight fiscal policies slows the bank run and mitigates insolvency. A devaluation, combined with compensatory monetary policy, reduces insolvencies and increases the growth of real income, but at the cost of increased inflation.

Author :
Publisher : Lulu.com
ISBN 13 : 9291316695
Total Pages : 294 pages
Book Rating : 4.94/5 ( download)

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Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Board of Governors of the Federal Reserve System
Publisher :
ISBN 13 : 9780894991967
Total Pages : 0 pages
Book Rating : 4.65/5 ( download)

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Download or read book The Federal Reserve System Purposes and Functions written by Board of Governors of the Federal Reserve System and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1589063856
Total Pages : 302 pages
Book Rating : 4.53/5 ( download)

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Download or read book Financial Soundness Indicators written by International Monetary Fund and published by International Monetary Fund. This book was released on 2006-04-04 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Soundness Indicators (FSIs) are measures that indicate the current financial health and soundness of a country's financial institutions, and their corporate and household counterparts. FSIs include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for the purpose of supporting macroprudential analysis--the assessment and surveillance of the strengths and vulnerabilities of financial systems--with a view to strengthening financial stability and limiting the likelihood of financial crises. Financial Soundness Indicators: Compilation Guide is intended to give guidance on the concepts, sources, and compilation and dissemination techniques underlying FSIs; to encourage the use and cross-country comparison of these data; and, thereby, to support national and international surveillance of financial systems.

Author : Mr.Stijn Claessens
Publisher : International Monetary Fund
ISBN 13 : 1475561008
Total Pages : 66 pages
Book Rating : 4.05/5 ( download)

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Download or read book Financial Crises Explanations, Types, and Implications written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2013-01-30 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.