Resolving Systemic Financial Crisis: Policies and Institutions
The authors analyze the role of institutions in resolving systemic banking crises for a broad sample of countries. Banking crises are fiscally costly, especially when policies like substantial liquidity support, explicit government guarantees on fi...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/08/5104607/resolving-systemic-financial-crisis-policies-institutions http://hdl.handle.net/10986/14149 |
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okr-10986-141492021-04-23T14:03:21Z Resolving Systemic Financial Crisis: Policies and Institutions Claessens, Constantijn A. Klingebiel, Daniela Laeven, Luc ACCOUNTING ADVERSE EFFECTS ASSET BUBBLES ASSET PRICES BAILOUT COSTS BALANCE SHEETS BANK CREDIT BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BLANKET DEPOSIT GUARANTEES CAPITAL FLOWS CENTRAL BANKS CLEARING SYSTEMS CONTAINMENT PHASE CREDIBILITY CREDIT BOOMS CREDITOR CURRENCY CURRENCY CRISES DEBT OVERHANG DEBT RELIEF DEPOSIT INSURANCE DEPOSITORS DEPOSITS EARNINGS ECONOMIC COSTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL ANALYSES EMPIRICAL ANALYSIS EXTERNAL FINANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR RESTRUCTURING FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL COST FISCAL COSTS FOREIGN CURRENCY GOVERNMENT GUARANTEES INFLATION INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INTEREST RATES INTERNATIONAL LIQUIDITY The authors analyze the role of institutions in resolving systemic banking crises for a broad sample of countries. Banking crises are fiscally costly, especially when policies like substantial liquidity support, explicit government guarantees on financial institutions liabilities, and forbearance from prudential regulations are used. Higher fiscal outlays do not, however, accelerate the recovery from a crisis. Better institutions less corruption, improved law and order, legal system, and bureaucracy do. The authors find these results to be relatively robust to estimation techniques, including controlling for the effects of a poor institutional environment on the likelihood of financial crisis and the size of fiscal costs. Their results suggest that countries should use strict policies to resolve a crisis and use the crisis as an opportunity to implement medium-term structural reforms, which will also help avoid future systemic crises. 2013-06-24T17:41:11Z 2013-06-24T17:41:11Z 2004-08 http://documents.worldbank.org/curated/en/2004/08/5104607/resolving-systemic-financial-crisis-policies-institutions http://hdl.handle.net/10986/14149 English en_US Policy Research Working Paper;No.3377 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADVERSE EFFECTS ASSET BUBBLES ASSET PRICES BAILOUT COSTS BALANCE SHEETS BANK CREDIT BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BLANKET DEPOSIT GUARANTEES CAPITAL FLOWS CENTRAL BANKS CLEARING SYSTEMS CONTAINMENT PHASE CREDIBILITY CREDIT BOOMS CREDITOR CURRENCY CURRENCY CRISES DEBT OVERHANG DEBT RELIEF DEPOSIT INSURANCE DEPOSITORS DEPOSITS EARNINGS ECONOMIC COSTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL ANALYSES EMPIRICAL ANALYSIS EXTERNAL FINANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR RESTRUCTURING FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL COST FISCAL COSTS FOREIGN CURRENCY GOVERNMENT GUARANTEES INFLATION INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INTEREST RATES INTERNATIONAL LIQUIDITY |
| spellingShingle |
ACCOUNTING ADVERSE EFFECTS ASSET BUBBLES ASSET PRICES BAILOUT COSTS BALANCE SHEETS BANK CREDIT BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BLANKET DEPOSIT GUARANTEES CAPITAL FLOWS CENTRAL BANKS CLEARING SYSTEMS CONTAINMENT PHASE CREDIBILITY CREDIT BOOMS CREDITOR CURRENCY CURRENCY CRISES DEBT OVERHANG DEBT RELIEF DEPOSIT INSURANCE DEPOSITORS DEPOSITS EARNINGS ECONOMIC COSTS ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC RECOVERY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL ANALYSES EMPIRICAL ANALYSIS EXTERNAL FINANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL RESTRUCTURING FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR RESTRUCTURING FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL COST FISCAL COSTS FOREIGN CURRENCY GOVERNMENT GUARANTEES INFLATION INSOLVENCY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INTEREST RATES INTERNATIONAL LIQUIDITY Claessens, Constantijn A. Klingebiel, Daniela Laeven, Luc Resolving Systemic Financial Crisis: Policies and Institutions |
| relation |
Policy Research Working Paper;No.3377 |
| description |
The authors analyze the role of
institutions in resolving systemic banking crises for a
broad sample of countries. Banking crises are fiscally
costly, especially when policies like substantial liquidity
support, explicit government guarantees on financial
institutions liabilities, and forbearance from prudential
regulations are used. Higher fiscal outlays do not, however,
accelerate the recovery from a crisis. Better
institutions less corruption, improved law and order, legal
system, and bureaucracy do. The authors find these results
to be relatively robust to estimation techniques, including
controlling for the effects of a poor institutional
environment on the likelihood of financial crisis and the
size of fiscal costs. Their results suggest that countries
should use strict policies to resolve a crisis and use the
crisis as an opportunity to implement medium-term structural
reforms, which will also help avoid future systemic crises. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Claessens, Constantijn A. Klingebiel, Daniela Laeven, Luc |
| author_facet |
Claessens, Constantijn A. Klingebiel, Daniela Laeven, Luc |
| author_sort |
Claessens, Constantijn A. |
| title |
Resolving Systemic Financial Crisis: Policies and Institutions |
| title_short |
Resolving Systemic Financial Crisis: Policies and Institutions |
| title_full |
Resolving Systemic Financial Crisis: Policies and Institutions |
| title_fullStr |
Resolving Systemic Financial Crisis: Policies and Institutions |
| title_full_unstemmed |
Resolving Systemic Financial Crisis: Policies and Institutions |
| title_sort |
resolving systemic financial crisis: policies and institutions |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/08/5104607/resolving-systemic-financial-crisis-policies-institutions http://hdl.handle.net/10986/14149 |
| _version_ |
1764430643414958080 |