Systemic Financial Crises: Containment and Resolution - Hardcover

Hardcover

ISBN 10: 0521851858 ISBN 13: 9780521851855

Publisher: Cambridge University Press, 2005

Synopsis

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.

About this title

Book Description

This volume considers the strengths and weaknesses of the various policy options for systemic financial crises, 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.

About the Author

Luc Laeven is a Senior Financial Economist at the World Bank. He has participated in several financial and private sector operations of the World Bank, focusing on the development of banking systems and corporate sectors. His research focuses on international banking and corporate finance issues and has been published in numerous books and academic journals, including the Journal of Finance, the Journal of Money, Credit, and Banking, the Journal of Financial Intermediation, and the Journal of Banking and Finance. He is an Extramural Fellow at Tilburg University and a Research Affiliate in the Financial Economics Programme of the Centre for Economic Policy Research in London.

Edition details

• Publisher: Cambridge University Press
• Publication date: 2005
• Language: English
• ISBN 10: 0521851858
• ISBN 13: 9780521851855
• Binding: Hardcover
• Number of pages: 400
• Editor: Honohan Patrick, Laeven Luc