Banking Crises and Bank Resolution: Experiences in Some Transition Economies

International Monetary Fund

No 2002/056, IMF Working Papers from International Monetary Fund

Abstract: Like most transition economies, Bulgaria, Lithuania, and Mongolia suffered severe banking crises, which had to be resolved before growth could resume. The macroeconomic and institutional failings that led to these crises are described, and parallels are drawn with the causes of banking crises in industrial and developing countries. Resolving the crises proved technically and politically difficult, and setbacks occurred. Successful resolution required the implementation of a comprehensive and decisive strategy, involving thorough-going bank restructuring, heavy fiscal costs, and institutional and legal reforms.

Keywords: WP; central bank; banking sector; banking system; exchange rate; foreign currency; Bulgaria; Lithuania; Mongolia; transition; banking crises; bank resolution; savings bank; bank liquidity; bank management; banks fail; bank insolvency law; closure operation; bank capital; flight to quality; rehabilitation bond; bank closure; bank supervisor; bank performance; Commercial banks; Loans; Monetary base; Deposit insurance; Central Asia; Central and Eastern Europe; Baltics; Eastern Europe (search for similar items in EconPapers)
Pages: 70
Date: 2002-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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