Contingent Liabilities from Banks: How to Track Them?
Electronic Access:
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Summary:
In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It generates an index that we call the banking sector contingent liability index (BCLI), based on the banking sector’s size, concentration, diversification, leverage, and riskiness of assets. The index is illustrated for 32 advanced and emerging market economies from 2006 to 2013, as well as a group of banks including global systemically important banks (G-SIBs).
Series:
Working Paper No. 2015/255
Subject:
Banking Banking crises Commercial banks Contingent liabilities Financial crises Financial institutions Global financial crisis of 2008-2009 Public financial management (PFM)
English
Publication Date:
December 9, 2015
ISBN/ISSN:
9781513568560/1018-5941
Stock No:
WPIEA2015255
Pages:
30
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