Controlling the Fiscal Costs of Banking Crises

Honohan, Patrick ; Klingebiel, Daniela

World Bank, Washington, DC

关键词: ASSET MANAGEMENT;    ASSET MANAGEMENT COMPANIES;    BALANCE SHEETS;    BANK CLOSURES;    BANK DEPOSITS;   

DOI  :  10.1596/1813-9450-2441
RP-ID  :  WPS2441

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In recent decades, a majority ofcountries have experienced a systemic banking crisisrequiring a major-and expensive-overhaul of their bankingsystem. Not only do banking crises hit the budget withoutlays that must be absorbed by higher taxes (or spendingcuts), but they are costly in terms of forgone economicoutput. Many different policy recommendations have been madefor limiting the cost of crises, but there has been littlesystematic effort to see which recommendations work inpractice. The authors try to quantify the extent to whichfiscal outlays incurred in resolving banking distress can beattributed to crisis management measures of a particularkind adopted by the government in the early years of thecrisis. They find evidence that certain crisis managementstrategies appear to add greatly to fiscal costs: unlimiteddeposit guarantees, open-ended liquidity support, repeatedrecapitalization, debtor bail-outs, and regulatoryforbearance. Their findings clearly tilt the balance infavor of a strict rather than an accommodating approach tocrisis resolution. At the very least, regulatory authoritieswho choose an accommodating or gradualist approach to anemerging crisis must be sure they have some other way tocontrol risk-taking.