Assessing Financial System Vulnerabilities

Recent financial crises have highlighted the potentially significant macroeconomic costs of financial system instability, and the potential for the instability in the financial system of one country to have broader implications for the stability of financial systems and macroeconomic performance in other countries. This paper reviews the different analytical approaches to assessing vulnerabilities in the financial systems and the benefits and limitations of the different approaches, and suggests enhancements that could help strengthen financial system stability assessments.

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Year of publication:	2000-04-01
Authors:	Johnston, R. B. ; Schumacher, Liliana ; Chai, Jingqing
Institutions:	International Monetary Fund (IMF)
Subject:	Financial systems \| Economic models \| financial system \| financial institutions \| incentive structures \| deposit insurance \| changes in prices \| financial sector \| moral hazard \| financial markets \| financial stability \| financial intermediaries \| derivative \| bond \| financial market \| cash flows \| bonds \| financial liberalization \| interest rate risk \| international standards \| rational herding \| analytical framework \| financial instruments \| financial resources \| derivative products \| derivative markets \| financial safety net \| equity markets \| analytical approaches \| derivative transactions \| asset markets \| currency of denomination \| stock index \| portfolio of bonds \| future cash flows \| external debt \| domestic financial system \| partial equilibrium \| cash flow \| hedge \| partial equilibrium analysis \| data limitations \| fiscal policy \| financial intermediation \| stock market \| financial regulation \| data sets \| hedge funds \| stock exchange \| hedging \| financial sector reform \| financial fragility \| present value \| stock market index \| financial contagion \| financial structure \| financial derivatives \| first-order approximation \| equilibrium analysis \| information sources \| money market \| liquid asset \| equity capital \| financial sector problems \| financial economics \| data requirements

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 00/76 3 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005768830