A National Wealth Approach to Banking Crises and Financial Stability
Olivier Frecaut
No 2016/128, IMF Working Papers from International Monetary Fund
Abstract:
The paper explores a different, supplementary way to assess and manage a particular type of banking crises, those arising from a rise of nonperforming loans to the corporate sector. It relies on a “national wealth approach,” focusing on the distribution of net wealth among economic sectors and its interaction with developments in the banking system. It identifies avenues for policy response optimization, based on an integrated macrofinancial analytical framework, both for the prevention and the resolution of these types of economic events.
Keywords: WP; income statement; bank data; banking sector issue; collection capability; work agenda; Banking sector distress; National accounts; Macro-financial analysis integration; orphan financial assets; profitability data; value creation; bank borrower; bank capital; financial condition; Banking crises; Commercial banks; Financial statements; Financial sector stability; Global (search for similar items in EconPapers)
Pages: 30
Date: 2016-07-05
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2016/128
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