WTO Financial Services Commitments: Determinants and Impacton Financial Stability

December 1, 2002

Preview Citation

Format: Chicago

Nico Valckx. WTO Financial Services Commitments: Determinants and Impacton Financial Stability, (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

The paper investigates the factors that have influenced WTO members to take on their chosen level of liberalization commitments in the framework of liberalization of trade in financial services and the impact of such commitments on financial sector stability. The most important factors are economic growth, current account, trends in banking sector development, policy restrictiveness, and peer group effects. The econometric evidence suggests that more liberal commitments may be associated with greater vulnerability to currency and banking crises-most likely a short-term effect, which should be mitigated with time through increased market efficiency and better resource allocation.

Subject: Banking, Banking crises, Currency crises, Economic sectors, Financial crises, Financial sector, Financial services

Keywords: Bank crisis model, Banking and currency crises, Banking crises, Banking crisis, Choice of commitments, Crisis country, Currency crises, East Asia, Extreme bounds analysis, Financial instability, Financial sector, Financial services commitment, Financial services liberalization commitments, High-commitment country, Liberalization commitment, Low-commitment country, WP, WTO

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/214
Stock No:

WPIEA2142002
ISBN:

9781451875003
ISSN:

1018-5941

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