Financial Crisis in Developing Countries and Structural Weaknesses of the Financial System
This paper examines the generation of financial crises in developing economies and shows that the microeconomic structure of the financial sector is a crucial factor in creating the conditions for a crisis. Structural problems of the financial system in developing countries, including implicit insurance on bank liabilities, limitations of capital markets, and lack of appropriate regulations, are sources of financial fragility. The paper concludes that close supervision of bank loans is needed to eliminate these distortions, and the optimal intervention consists of imposing an adjustable bankruptcy penalty on banking activity or charging a fair insurance premium on bank liabilities
Year of publication: |
1989
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Institutions: | International Monetary Fund ; International Monetary Fund (contributor) |
Publisher: |
Washington, D.C : International Monetary Fund |
Subject: | Entwicklungsländer | Developing countries | Finanzsektor | Financial sector | Finanzmarkt | Financial market | Konjunktur | Business cycle | Kreditwürdigkeit | Credit rating | Kreditversicherung | Credit insurance | Finanzkrise | Financial crisis |
Saved in:
freely available
Extent: | Online-Ressource (46 p) |
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Series: | IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper |
Language: | English |
ISBN: | 1-4519-7911-8 ; 978-1-4519-7911-4 |
Other identifiers: | 10.5089/9781451979114.001 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014396313
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