Why Are There So Many Banking Crises?

Why Are There So Many Banking Crises?

Almost every country in the world has sophisticated systems to prevent banking crises. Yet such crises--and the massive financial and social damage they can cause--remain common throughout the world. Does deposit insurance encourage depositors and bankers to take excessive risks? Are banking regulations poorly designed? Or are banking regulators incompetent? Jean-Charles Rochet, one of the world's leading authorities on banking regulation, argues that the answer in each case is "no." In Why Are There So Many Banking Crises?, he makes the case that, although many banking crises are precipitated by financial deregulation and globalization, political interference often causes--and almost always exacerbates--banking crises. If, for example, political authorities are allowed to pressure banking regulators into bailing out banks that should be allowed to fail, then regulation will lack credibility and market discipline won't work. Only by insuring the independence of banking regulators, Rochet says, can market forces work and banking crises be prevented and minimized. In this important collection of essays, Rochet examines the causes of banking crises around the world in recent decades, focusing on the lender of last resort; prudential regulation and the management of risk; and solvency regulations. His proposals for reforms that could limit the frequency and severity of banking crises should interest a wide range of academic economists and those working for central and private banks and financial services authorities.


Author
Publisher Princeton University Press
Release Date
ISBN 1400828317
Pages 320 pages
Why Are There So Many Banking Crises?
Language: en
Pages: 320
Authors: Jean-Charles Rochet
Categories: Political Science
Type: BOOK - Published: 2009-02-09 - Publisher: Princeton University Press

Almost every country in the world has sophisticated systems to prevent banking crises. Yet such crises--and the massive financial and social damage they can cau
Fragile by Design
Language: en
Pages: 584
Authors: Charles W. Calomiris
Categories: Business & Economics
Type: BOOK - Published: 2015-08-04 - Publisher: Princeton University Press

Why stable banking systems are so rare Why are banking systems unstable in so many countries—but not in others? The United States has had twelve systemic bank
Banking Crises
Language: en
Pages: 350
Authors: Garett Jones
Categories: Business & Economics
Type: BOOK - Published: 2016-01-26 - Publisher: Springer

Why do banks collapse? Are financial systems more fragile in recent decades? Can policies to fix the banking system do more harm than good? What's the history o
Management and Resolution of Banking Crises
Language: en
Pages: 66
Authors: Jose de Luna-Martinez
Categories: Business & Economics
Type: BOOK - Published: 2000-01-01 - Publisher: World Bank Publications

WBI Learning Resources Series. Water is a vital element for agricultural production and for economic development in general. However, the spatial and temporal d
Interventions in Banks During Banking Crises
Language: en
Pages: 31
Authors: Mr.Charles Enoch
Categories: Business & Economics
Type: BOOK - Published: 2000-03-01 - Publisher: International Monetary Fund

Interventions in banks are often an integral element of a government’s program for addressing a systemic banking crisis. Interventions may be warranted becaus
The Use of Blanket Guarantees in Banking Crises
Language: en
Pages: 46
Authors: Luc Laeven
Categories: Business & Economics
Type: BOOK - Published: 2008-10 - Publisher: International Monetary Fund

In episodes of significant banking distress or perceived systemic risk to the financial system, policymakers have often opted for issuing blanket guarantees on
Coping with Financial Crises
Language: en
Pages: 192
Authors: Hugh Rockoff
Categories: Business & Economics
Type: BOOK - Published: 2017-11-09 - Publisher: Springer

This edited volume is based on original essays first presented at the World Economic History Conference, Kyoto, Japan, in August 2015. It also includes three es
The Resolution of Cross-border Banking Crises in the European Union
Language: en
Pages: 313
Authors: Seraina Neva Grünewald
Categories: Business & Economics
Type: BOOK - Published: 2014 - Publisher:

Any policy aimed at resolution of a banking crisis determines which constituents - depositors, creditors, shareholders, the banking industry, and society as a w
Financial Sector Reform and Banking Crises in the Baltic Countries
Language: en
Pages: 52
Authors: International Monetary Fund
Categories: Business & Economics
Type: BOOK - Published: 1996-12-01 - Publisher: International Monetary Fund

Financial sector reform in the Baltic countries is reviewed in light of the banking crises that emerged during the reform period. It is argued that the crises h
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Language: en
Pages: 62
Authors: International Monetary Fund
Categories: Business & Economics
Type: BOOK - Published: 1990-01-01 - Publisher: International Monetary Fund

This paper compares experiences with banking crises in seven countries in order to analyze the factors governing the crises and the effectiveness of measures to