Systemic financial crises : containment and resolution / edited by Patrick Honohan, Luc Laeven.

Format:

Book

Contributor:

Honohan, Patrick.

Laeven, Luc.

Language:

English

Subjects (All):

Financial crises.

Physical Description:

xi, 384 pages : illustrations ; 24 cm

Place of Publication:

Cambridge, UK ; New York, NY : Cambridge University Press, 2005.

Summary:

Faced with a systemic financial sector crisis, policymakers need to make difficult choices under pressure. Based on the experience of many countries in recent years, few have been able to achieve a speedy, lasting and low-cost resolution. This volume considers the strengths and weaknesses of the various policy options, covering both microeconomic (including recapitalization of banks, bank closures, subsidies for distressed borrowers, capital adequacy rules and corporate governance and bankruptcy law requirements) and macroeconomic (including monetary and fiscal policy) dimensions. The contributors explore the important but little understood trade-offs that are involved, such as between policies which take effect quickly, those which minimize long-term fiscal and economic costs, and those which create favorable incentives for future stability. Successfully implementing crisis management and crisis resolution policy required attention to detail and a good flow of information.

Contents:

Part 2 Containment and Resolution

2 Financial Crisis Policies and Resolution Mechanisms: A Taxonomy from Cross-Country Experience / Charles W. Calomiris, Daniela Klingebiel, Luc Laeven 25

3 Pitfalls in Managing Closures of Financial Institutions / Carl-Johan Lindgren 76

4 Fiscal, Monetary, and Incentive Implications of Bank Recapitalization / Patrick Honohan 109

Part 3 Models and Econometric Evidence

5 Policies for Banking Crises: A Theoretical Framework / Rafael Repullo 137

6 Crisis Resolution, Policies, and Institutions: Empirical Evidence / Stijn Claessens, Daniela Klingebiel, Luc Laeven 169

Part 4 Structural Reforms

7 Financial Crises and the Presence of Foreign Banks / Adrian Tschoegl 197

8 Maximizing the Value of Distressed Assets: Bankruptcy Law and the Efficient Reorganization of Firms / David Smith, Per Stromberg 232

9 Crisis Resolution and Credit Allocation: The Case of Japan / Joe Peek, Eric Rosengren 276

Appendix Banking Crisis Database 307.

Notes:

Includes bibliographical references (pages 341-359) and index.

ISBN:

0521851858

OCLC:

56733222

Publisher Number:

9780521851855