Resolving Bank Failures and Institutions: Is there a Link? Some Empirical Evidence

August 6, 2021

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Format: Chicago

Marlon Rawlins, and Luisa Zanforlin. Resolving Bank Failures and Institutions: Is there a Link? Some Empirical Evidence, (USA: International Monetary Fund, 2021) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Policymakers across countries have been seeking to strengthen the institutional framework to control fiscal costs and feedback effects to the real economy generated by bank failures. On a cross-section of countries, we find evidence that suggests that bank supervisors’ intervention in bank failures may be positively associated with some aspects of the administrative and regulatory framework. Our results appear to hold also during times of financial instability. Finally, we find some evidence that the same institutional features may be associated with lower fiscal outlays during banking crises.

Subject: Banking crises, Central bank autonomy, Central banks, Distressed institutions, Financial crises, Financial institutions, Financial sector policy and analysis, Financial sector stability

Keywords: Bank insolvency proceeding, Banking crises, CB independence, Central bank autonomy, Distressed institutions, Feedback effect, Financial sector stability, Global, Government efficiency, Review authorities, South America, Supervisory authority, Times authorities

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/211
Stock No:

WPIEA2021211
ISBN:

9781513590837
ISSN:

1018-5941

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