Liberalization, Prudential Supervision, and Capital Requirements : The Policy Trade-Offs /

While deregulated financial markets and strong competition are commonly viewed as prerequisites for successful economic development, recent empirical evidence suggests that financial liberalization, if not well phased, can lead to costly financial crises. This paper focuses on the roles of minimum c...

Täydet tiedot

Bibliografiset tiedot
Päätekijä: Ribakova, Elina
Aineistotyyppi: Aikakauslehti
Kieli:English
Julkaistu: Washington, D.C. : International Monetary Fund, 2005.
Sarja:IMF Working Papers; Working Paper ; No. 2005/136
Linkit:Full text available on IMF
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245 1 0 |a Liberalization, Prudential Supervision, and Capital Requirements :   |b The Policy Trade-Offs /  |c Elina Ribakova. 
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300 |a 1 online resource (14 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a While deregulated financial markets and strong competition are commonly viewed as prerequisites for successful economic development, recent empirical evidence suggests that financial liberalization, if not well phased, can lead to costly financial crises. This paper focuses on the roles of minimum capital requirements and prudential supervision in promoting financial stability during financial liberalization. The paper extends the Hellmann, Murdock, and Stiglitz model to analyze the effects of prudential supervision and demonstrates the trade-off between the quality of supervision and the level of minimum capital requirements. Where prudential supervision is poor, higher capital requirements are optimal. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2005/136 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2005/136/001.2005.issue-136-en.xml  |z IMF e-Library