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Safe and sound banking in developing countries : we're not in Kansas anymore
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In this article, the authors review some of the salient facts about the boom in banking busts in developing countries and present a multi-pillar approach to safe and sound banking, one that would focus attention on factors that restrict banks'ability and willingness to diversify risk.Abstract:
Drawing on earlier work, the author reviews some of the salient facts about the boom in banking busts in developing countries. He then reviews policy responses taken by authorities in some of the"early"crisis countries, and considers a wider menu of responses -in particular the currently popular suggestion that promulgating an International Banking Standard would significantly improve the safety and soundness of banking systems in developing countries. Such a standard is not without appeal, but other approaches are probably necessary in developing countries where risks are usually greater, financial institutions are less diversified, markets are less transparent, supervision is weak, and other ingredients critical to sound banking are either missing or scarcer than in industrial countries. The author calls for a multi-pillar approach to safe and sound banking, one that would: (1) focus attention on factors that restrict banks'ability and willingness to diversify risk; and (2) Give three key groups -owners (and managers), the market (including uninsured debtholders and other possible co-owners), and supervisors- more incentive and ability to monitor banks and ensure their prudent corporate governance.read more
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Capital Market Liberalization, Economic Growth, and Instability
TL;DR: This article reviewed the arguments for capital market liberalization, and identified their theoretical and empirical weaknesses, and provided the foundations for the argument for intervention in short-term capital flows, concluding with a brief discussion of the various ways in which such interventions may be implemented.
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More instruments and broader goals : moving toward the post Washington consensus
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Economic growth in the 1990s : learning from a decade of reform
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Nonperforming loans in Sub-Saharan Africa : causal analysis and macroeconomic implications
TL;DR: In this article, the authors investigated the leading causes of nonperforming loans during the economic and banking crises that affected a large number of countries in Sub-Saharan Africa in the 1990s.
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Reforming the Global Economic Architecture: Lessons from Recent Crises
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Law and Finance
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Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
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Journal ArticleDOI
A New Data Set Measuring Income Inequality
Klaus Deininger,Lyn Squire +1 more
TL;DR: In this paper, a new data set on inequality in the distribution of income is presented, and the authors explain the criteria they applied in selecting data on Gini coefficients and on individual quintile groups' income shares.
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