Domestic Bank Regulation and Financial Crises [electronic resource] : Theory and Empirical Evidence From East Asia, Kletzer, Kenneth.

Kletzer, Kenneth.
Washington, D.C. : International Monetary Fund, 2001.
IMF eLibrary
IMF Working Papers; Working Paper No. 01/63.
IMF Working Papers; Working Paper No. 01/63
Government document
1 online resource (50 p.)
Local subjects:
Bank assets.
Bank bailouts.
Bank borrowers.
Bank borrowing.
Bank credit.
Bank debt.
Bank debts.
Bank deposit.
Bank deposit guarantees.
Bank deposits.
Bank equities.
Bank equity.
Bank failures.
Bank financing.
Bank fragility.
Bank guarantees.
Bank insolvencies.
Bank lending.
Bank liabilities.
Bank loan.
Bank loans.
Bank management.
Bank negara malaysia.
Bank of korea.
Bank of thailand.
Bank policy.
Bank portfolios.
Bank regulation.
Bank regulations.
Bank reserves.
Bank runs.
Bank safety.
Bank safety net.
Bank shares.
Bank stability.
Bank stocks.
Bank supervision.
Bank supervisors.
Banking crises.
Banking crisis.
Banking model.
Banking sector.
Banking system.
Banking system stability.
Banking systems.
Borrowing cost.
Capital accumulation.
Capital controls.
Capital flows.
Capital increases.
Capital inflow.
Capital inflows.
Capital losses.
Capital market.
Capital markets.
Capital productivity.
Capital stock.
Connected lending.
Corporate bonds.
Credit market.
Crisis prevention.
Current account deficit.
Deposit insurance.
Deposit insurance scheme.
Domestic borrowing.
Domestic credit.
Economic models.
Equity financing.
Equity investment.
Equity ratio.
Equity shares.
Exchange rate regimes.
Floating exchange rate regime.
Foreign capital.
Foreign capital flows.
Foreign capital inflows.
Foreign Exchange.
Forward contracts.
Global capital market.
Gross domestic product.
International capital.
International capital flows.
International capital inflows.
Investor confidence.
Liquid asset.
Liquidity crisis.
Loan classification.
Merchant bank.
Monetary authority.
Moral hazard.
Net capital.
Open Economy Macroeconomics.
Present value.
Prudential regulation.
Reserve ratio.
Retained earnings.
Return on assets.
Return on investment.
Securities market.
Speculative attack.
Speculative attacks.
Stock market.
Strong capital inflow.
Systemic banking crisis.
Korea, Republic of.
Saint Lucia.
Taiwan Province of China.
A model of the domestic financial intermediation of foreign capital inflows based on agency costs is developed for studying financial crises in emerging markets. In equilibrium, the banking system becomes progressively more fragile under imperfect prudential regulation and public sector loan guarantees until a crisis occurs with a sudden reversal of capital flows. The crisis evolves endogenously as the banking system becomes increasingly vulnerable through the renegotiation of loans after idiosyncratic firm-specific revenue shocks. The model generates dynamic relationships between foreign capital inflows, domestic investment, corporate debt and equity values in an endogenous growth model. The model''s assumptions and implications for the behavior of the economy before and after crisis are compared to the experience of five East Asian economies. The case studies compare three that suffered a crisis or near-crisis, Thailand and Malaysia, to two that did not, Taiwan Province of China and Singapore, and lend support to the model.
Description based on print version record.
Dekle, Robert.
Kletzer, Kenneth.
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