Over the last two decades banking systems in Latin America have been subject to considerable banking distress and numerous crises. This conference looked at proposals for preventing such episodes. The discussions covered the genesis and implications of deposit insurance cum fractional reserve...

We use a Diamond/Dybvig-based model with two banks operating in separate regions connected by a common asset market in which banks and sophisticated depositors invest. We study the effect of a potential run (crisis) and subsequent fire sales on the asset price in both the crisis and no-crisis...