Banking Crises and Bank Resolution: Experiences in Some Transition Economies

March 1, 2002

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Banking Crises and Bank Resolution: Experiences in Some Transition Economies, (USA: International Monetary Fund, 2002) accessed November 21, 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

Like most transition economies, Bulgaria, Lithuania, and Mongolia suffered severe banking crises, which had to be resolved before growth could resume. The macroeconomic and institutional failings that led to these crises are described, and parallels are drawn with the causes of banking crises in industrial and developing countries. Resolving the crises proved technically and politically difficult, and setbacks occurred. Successful resolution required the implementation of a comprehensive and decisive strategy, involving thorough-going bank restructuring, heavy fiscal costs, and institutional and legal reforms.

Subject: Banking, Banking crises, Commercial banks, Deposit insurance, Financial crises, Financial institutions, Loans, Monetary base, Money

Keywords: Baltics, Bank capital, Bank closure, Bank insolvency law, Bank liquidity, Bank management, Bank performance, Bank resolution, Bank supervisor, Banking crises, Banking sector, Banking system, Banks fail, Bulgaria, Central and Eastern Europe, Central Asia, Central bank, Closure operation, Commercial banks, Deposit insurance, Eastern Europe, Exchange rate, Flight to quality, Foreign currency, Lithuania, Loans, Monetary base, Mongolia, Rehabilitation bond, Savings bank, Transition, WP

Publication Details

Pages:

70
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/056
Stock No:

WPIEA0562002
ISBN:

9781451847710
ISSN:

1018-5941

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