Banking Crises in Latin America in the 1990's: Lessons From Argentina, Paraguay, and Venezuela

Alicia García-Herrero
Authors registered in the RePEc Author Service: Alicia Garcia Herrero

No 1997/140, IMF Working Papers from International Monetary Fund

Abstract: Recent banking crises in Argentina, Paraguay, and Venezuela suggest that the macroeconomic impact is influenced by the causes of the crisis, the exchange rate regime, the degree of dollarization, and the structure of the banking system. Crises stemming from both macroeconomic and bank-specific causes had the largest macroeconomic impact. Countries with high dollarization and a large share of foreign and government-owned banks maintained a more stable deposit base, at least temporarily, by shifting to dollar-denominated deposits and foreign and government-owned banks. Countries that responded with a rapid, consistent, and comprehensive policy response reduced the negative macroeconomic consequences of their crises.

Keywords: WP; interest rate; nationalized bank; banking crisis; exchange rate; capital flight; distressed bank; monetary policy; foreign currency; Commercial banks; Banking crises; Credit; Reserve requirements (search for similar items in EconPapers)
Pages: 70
Date: 1997-10-01
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Citations: View citations in EconPapers (13)

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Chapter: Banking Crises in Latin America in the 1990s: Lessons from Argentina, Paraguay and Venezuela (2004)
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