In recent decades nations around the world have experienced financial crisis. In some cases political leaders have contributed to the suddenness and magnitude of the crisis by initially providing overly optimistic assertions concerning the potential benefits of their financial liberalisation...

In recent years banks in emerging and transition economies throughout the world have been compelled to change lending and financial reporting practices in response to the economic transition of their countries. Correspondingly, on the basis of the theory of soft budget constraints (SBC),...