Do Dynamic Provisions Enhance Bank Solvency and Reduce Credit Procyclicality? : a Study of the Chilean Banking System /

Dynamic provisions could help to enhance the solvency of individual banks and reduce procyclicality. Accomplishing these objectives depends on country-specific features of the banking system, business practices, and the calibration of the dynamic provisions scheme. In the case of Chile, a simulation...

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Podrobná bibliografie
Hlavní autor: Chan-Lau, Jorge
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2012.
Edice:IMF Working Papers; Working Paper ; No. 2012/124
On-line přístup:Full text available on IMF
Popis
Shrnutí:Dynamic provisions could help to enhance the solvency of individual banks and reduce procyclicality. Accomplishing these objectives depends on country-specific features of the banking system, business practices, and the calibration of the dynamic provisions scheme. In the case of Chile, a simulation analysis suggests Spanish dynamic provisions would improve banks' resilience to adverse shocks but would not reduce procyclicality. To address the latter, other countercyclical measures should be considered.
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Fyzický popis:1 online resource (21 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
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