Assessing Financial System Vulnerabilities

By R. B. Johnston, Liliana B Schumacher, Jingqing Chai

April 1, 2000

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Format: Chicago

R. B. Johnston, Liliana B Schumacher, and Jingqing Chai. Assessing Financial System Vulnerabilities, (USA: International Monetary Fund, 2000) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Recent financial crises have highlighted the potentially significant macroeconomic costs of financial system instability, and the potential for the instability in the financial system of one country to have broader implications for the stability of financial systems and macroeconomic performance in other countries. This paper reviews the different analytical approaches to assessing vulnerabilities in the financial systems and the benefits and limitations of the different approaches, and suggests enhancements that could help strengthen financial system stability assessments.

Subject: Banking, Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Financial sector risk, Financial sector stability, Financial statements, Market risk, Public financial management (PFM), Tax incentives

Keywords: Asymmetric information, Bank exposure, Bank portfolio, Banking system, Credit risk, Financial sector risk, Financial sector stability, Financial statements, Financial system assessment, Financial system vulnerabilities, Financial system vulnerability, Incentive structure, Interest rate, Market participant, Market risk, Net risk, Risk model, Risk models, Risk-management model, Risk-measurement model, Var model, Vulnerability assessment, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/076
Stock No:

WPIEA0762000
ISBN:

9781451849868
ISSN:

1018-5941

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