The Resource The use of blanket guarantees in banking crises, prepared by Luc Laeven, Fabian Valencia

The use of blanket guarantees in banking crises, prepared by Luc Laeven, Fabian Valencia

Label
The use of blanket guarantees in banking crises
Title
The use of blanket guarantees in banking crises
Statement of responsibility
prepared by Luc Laeven, Fabian Valencia
Creator
Contributor
Subject
Language
eng
Summary
In episodes of significant banking distress or perceived systemic risk to the financial system, policymakers have often opted for issuing blanket guarantees on bank liabilities to stop or avoid widespread bank runs. In theory, blanket guarantees can prevent bank runs if they are credible. However, guarantee could add substantial fiscal costs to bank restructuring programs and may increase moral hazard going forward. Using a sample of 42 episodes of banking crises, this paper finds that blanket guarantees are successful in reducing liquidity pressures on banks arising from deposit withdrawals. However, banks' foreign liabilities appear virtually irresponsive to blanket guarantees. Furthermore, guarantees tend to be fiscally costly, though this positive association arises in large part because guarantees tend to be employed in conjunction with extensive liquidity support and when crises are severe
Member of
Action
digitized
Cataloging source
OCLCE
Index
no index present
Literary form
non fiction
Nature of contents
dictionaries
Series statement
IMF working paper
Series volume
WP08/250
Label
The use of blanket guarantees in banking crises, prepared by Luc Laeven, Fabian Valencia
Publication
Note
"October 2008."
Antecedent source
file reproduced from original
http://library.link/vocab/branchCode
  • net
Carrier category
volume
Carrier category code
nc
Carrier MARC source
rdacarrier
Color
black and white
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Contents
  • Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Country Experiences; Table 1. Selected Blanket Guarantee Episodes; Table 2. Selected Bank-Specific Guarantee Announcements; III. Effectiveness of Blanket Guarantees; Figure 1. Effectiveness of Depositors' Guarantees in Selected Countries; A. Empirical Analysis; Table 3. Impact of Blanket Guarantees on Liquidity Support; Table 4. Short-Term and Medium-Term Effects of Guarantees on Liquidity Support; Table 5. Impact of Blanket Guarantees on Foreign Liabilities
  • Table 6. Short-Term and Medium-Term Effect of Guarantees on Foreign LiabilitiesIV. The Costs of Using Blanket Guarantees; Figure 2. Fiscal Costs and Blanket Guarantees; Table 7. Blanket Guarantee and Extensive Liquidity Support; Figure 3. Crisis Intensity and Blanket Guarantees; Table 8. Blanket Guarantees, Crisis Intensity, and Fiscal Costs; V. Policy Implications; VI. Conclusions; Table A1. Sequence of Events in Selected Crisis Episodes; Table A2. IMF Programs and Bank Restructuring Policies; References; Footnotes
Control code
ocn891466044
Dimensions
unknown
Extent
1 online resource (45 pages.)
File format
one file format
Form of item
online
Isbn
9781452745039
Media category
unmediated
Media MARC source
rdamedia
Media type code
n
http://library.link/vocab/recordID
.b35504110
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
  • (OCoLC)891466044
  • pebcs145274503X
System details
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.

Library Locations

    • Deakin University Library - Geelong Waurn Ponds CampusBorrow it
      75 Pigdons Road, Waurn Ponds, Victoria, 3216, AU
      -38.195656 144.304955
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