Banking Crises in Latin America in the 1990's: Lessons From Argentina, Paraguay, and Venezuela

October 1, 1997

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Alicia García-Herrero. Banking Crises in Latin America in the 1990's: Lessons From Argentina, Paraguay, and Venezuela, (USA: International Monetary Fund, 1997) accessed December 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

Recent banking crises in Argentina, Paraguay, and Venezuela suggest that the macroeconomic impact is influenced by the causes of the crisis, the exchange rate regime, the degree of dollarization, and the structure of the banking system. Crises stemming from both macroeconomic and bank-specific causes had the largest macroeconomic impact. Countries with high dollarization and a large share of foreign and government-owned banks maintained a more stable deposit base, at least temporarily, by shifting to dollar-denominated deposits and foreign and government-owned banks. Countries that responded with a rapid, consistent, and comprehensive policy response reduced the negative macroeconomic consequences of their crises.

Subject: Bank deposits, Banking, Banking crises, Commercial banks, Credit, Financial crises, Financial institutions, Monetary policy, Money, Reserve requirements

Keywords: Banking crises, Banking crisis, Capital flight, Commercial banks, Credit, Distressed bank, Exchange rate, Foreign currency, Interest rate, Monetary policy, Nationalized bank, Reserve requirements, WP

Publication Details

Pages:

70
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/140
Stock No:

WPIEA1401997
ISBN:

9781451856095
ISSN:

1018-5941

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