Financial Stability Review
Financial Crisis Management Articles
2003
2005 2004 2003 2002 2001 2000 1999 1998
Resolution
of Banking Crises: a Review
(152k)
(Issue 15, December 2003)
Late last year, the Bank of England's Centre for Central Banking Studies hosted a research workshop for officials from a number of developed and emerging market economies on banking crisis resolution. This article, which draws on the information provided in the workshop, is based on a paper presented at its concluding conference. It describes some of the principles that authorities should and do consider when resolving banking crises, and possible resolution options. It also assesses the resolution practice in recent systemic banking crises.
Transparency
and Financial Stability
(200k)
(Issue 15, December 2003)
Improved information about macroeconomic fundamentals, the balance sheets of firms and financial institutions, and the conduct of policy have been central to recent efforts to improve financial stability. Strides have been made in recent years to improve the quantity and quality of data provision under the IMF's Special Data Dissemination Standard (SDDS). Pillar III of the proposed Basel II Accord relies on disclosures by banks to exert market discipline through the price mechanism. Codes and standards on monetary, fiscal and financial policy seek to establish best-practice guidelines to clarify the objectives, role and process of policy. And countries have sought to publicise the extent of their disclosures through Reports on Observance of Standards and Codes (ROSCs) in an attempt to make a virtue of their 'transparency about transparency'.
Moral
Hazard: How Does IMF Lending Affect Debtor and Creditor Incentives?
(107k)
(Issue 14, June 2003)
When the IMF lends to countries in crisis does this distort materially the risk-taking incentives of debtors and creditors - so-called 'moral hazard'? The existing literature is undecided. In this article, we take a critical look at the existing evidence and present some new evidence of our own. Taken together, it suggests that debtor and creditor moral hazard has been, and remains, a concern.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
