Since 2014
Financial Crisis in Developing Countries and Structural Weaknesses of the Financial System
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
Financial Crisis in Developing Countries and Structural Weaknesses of the Financial System
Financial Crisis in Developing Countries and Structural Weaknesses of the Financial System |
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| Creator |
Le Fort, Guillermo R.
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| Subject |
—
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| Description |
The paper examines the generation of financial crises indeveloping economies and shows that the microeconomic structure of fhe financial sector is a crucial factor in creating the conditions for a crisis. Structural problems of the financial system in developing countries, including implicit insurance on bank liabilities, limitations of capital markets, and lack of appropiate regulatlons, are sources of financial fragility. The paper concludes that the intervention of a supervisory agency is needed to eliminate these distortions, and the optimal intervention consists of charging a fair insurance premium on bank liabilities or imposing on adjustable bankruptcy penalty on banking activity.
Financial Crisis in Developing Countries and Structural Weaknesses of the Financial System |
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| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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| Contributor |
—
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| Date |
2010-03-11
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/245
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| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 6, No 2 (1991); 113-140
Revista de Análisis Económico – Economic Analysis Review; Vol 6, No 2 (1991); 113-140 0718-8870 0716-5927 |
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| Language |
eng
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| Relation |
http://www.rae-ear.org/index.php/rae/article/view/245/440
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