Liberalization, Prudential Supervision, and Capital Requirements : The Policy Trade-Offs / Elina Ribakova.

Format:

Book

Government document

Author/Creator:

Ribakova, Elina.

Contributor:

International Monetary Fund. European Department.

Series:

IMF Working Papers; Working Paper ; No. 2005/136

IMF Working Papers

Language:

English

Subjects (All):

International finance--Econometric models.

International finance.

Finance--Government policy--Econometric models.

Finance.

Capital movements--Econometric models.

Capital movements.

Banks and banking--State supervision--Econometric models.

Banks and banking.

Physical Description:

1 online resource (15 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2005.

Language Note:

English

Summary:

While deregulated financial markets and strong competition are commonly viewed as prerequisites for successful economic development, recent empirical evidence suggests that financial liberalization, if not well phased, can lead to costly financial crises. This paper focuses on the roles of minimum capital requirements and prudential supervision in promoting financial stability during financial liberalization. The paper extends the Hellmann, Murdock, and Stiglitz model to analyze the effects of prudential supervision and demonstrates the trade-off between the quality of supervision and the level of minimum capital requirements. Where prudential supervision is poor, higher capital requirements are optimal.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. FINANCIAL LIBERALIZATION AND IMPERFECT SUPERVISION""; ""III. CONCLUSION""; ""References""

Notes:

"July 2005."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613824950

9781462367993

1462367992

9781452780436

1452780439

9781283512503

1283512505

9781451906912

1451906919