The Role of Supervisory tools in Addressing Bank Borrowers' Currency Mismatches

The Role of Supervisory tools in Addressing Bank Borrowers' Currency Mismatches
Author: Maria del Mar Cacha
Publisher: International Monetary Fund
Total Pages: 32
Release: 2003-11-01
Genre: Business & Economics
ISBN: 1451875193

Bank borrowers' currency mismatches often result from unhedged foreign currency borrowing in economies where there is significant dollarization, exposing the financial sector to disguised credit risk. In the absence of standard tools or guidelines to counteract this risk, countries have resorted to outright regulatory limits in cases of moderate dollarization and to undesirable exchange controls in other cases. This paper proposes a "specific-to-group" provision rule based on the effective borrowing cost differential between domestic and foreign currency. Such a rule would help internalize the corresponding risks for banks and their borrowers in line with internationally accepted prudential and accounting standards.

The Role of Supervisory Tools in Addressing Bank Borrowers' Currency Mismatches

The Role of Supervisory Tools in Addressing Bank Borrowers' Currency Mismatches
Author: Maria del Mar Cacha
Publisher:
Total Pages: 31
Release: 2006
Genre:
ISBN:

Bank borrowers' currency mismatches often result from unhedged foreign currency borrowing in economies where there is significant dollarization, exposing the financial sector to disguised credit risk. In the absence of standard tools or guidelines to counteract this risk, countries have resorted to outright regulatory limits in cases of moderate dollarization and to undesirable exchange controls in other cases. This paper proposes a specific-to-group provision rule based on the effective borrowing cost differential between domestic and foreign currency. Such a rule would help internalize the corresponding risks for banks and their borrowers in line with internationally accepted prudential and accounting standards.

The Lender of Last Resort Function after the Global Financial Crisis

The Lender of Last Resort Function after the Global Financial Crisis
Author: Marc Dobler
Publisher: International Monetary Fund
Total Pages: 63
Release: 2016-01-22
Genre: Business & Economics
ISBN: 1513567780

The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this paper we focus on, for the most part, the provision of idiosyncratic support, approaching it from an operational perspective; highlighting different approaches adopted by central banks; and also identifying some of the issues that arose during the GFC.

The Federal Reserve System Purposes and Functions

The Federal Reserve System Purposes and Functions
Author: Board of Governors of the Federal Reserve System
Publisher:
Total Pages: 0
Release: 2002
Genre: Banks and Banking
ISBN: 9780894991967

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Staff Guidance Note on Macroprudential Policy

Staff Guidance Note on Macroprudential Policy
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 45
Release: 2014-06-11
Genre: Business & Economics
ISBN: 1498342620

This note provides guidance to facilitate the staff’s advice on macroprudential policy in Fund surveillance. It elaborates on the principles set out in the “Key Aspects of Macroprudential Policy,” taking into account the work of international standard setters as well as the evolving country experience with macroprudential policy. The main note is accompanied by supplements offering Detailed Guidance on Instruments and Considerations for Low Income Countries

IMF Survey

IMF Survey
Author: International Monetary Fund
Publisher:
Total Pages: 404
Release: 2004
Genre: International finance
ISBN:

Audits of Banks

Audits of Banks
Author: American Institute of Certified Public Accountants. Banking Committee
Publisher:
Total Pages: 220
Release: 1984
Genre: Business & Economics
ISBN:

Global Waves of Debt

Global Waves of Debt
Author: M. Ayhan Kose
Publisher: World Bank Publications
Total Pages: 403
Release: 2021-03-03
Genre: Business & Economics
ISBN: 1464815453

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.