IMF Lending and Banking Crises

Luca Papi, Andrea Presbitero and Alberto Zazzaro ()

No 2015/019, IMF Working Papers from International Monetary Fund

Abstract: This paper looks at the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1970-2010. The endogeneity of the IMF intervention is addressed by adopting an instrumental variable strategy and a propensity score matching estimator. Controlling for the standard determinants of banking crises, our results indicate that countries participating in IMF-supported lending programs are significantly less likely to experience a future banking crisis than nonborrowing countries. We also provide evidence suggesting that compliance with conditionality and loan size matter.

Keywords: WP; banking crisis; IMF arrangement; IMF program; IMF intervention; Banking crises; IMF programs; Political economy; Conditionality; IMF emergency liquidity provision; IMF loan agreement; IMF activity; IMF support; liquidity provision; lending arrangement; IMF presence; IMF rescue package; Systemic crises; Loans; Currency crises; Global (search for similar items in EconPapers)
Pages: 56
Date: 2015-01-26
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Citations: View citations in EconPapers (32)

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Related works:
Journal Article: IMF Lending and Banking Crises (2015)
Working Paper: IMF Lending and Banking Crises (2013)
Working Paper: IMF Lending and Banking Crises (2013)
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