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Bagehot’s principle, 86box
Bahamas, 103
Bailouts, government. See Bank bailouts
Bank bailouts:
 in
absence of deposit insurance, 62
fiscal
costs of, 29
as
option for restructuring, 70box,
71
as
source of market failures, 60
of
U.S. savings and loans, 72
Bank competition, 119-121,
123-125
Bank concentration:
and
access to credit, 124-125,
195-196
and
bank stability, 123
as
cause of banking crises, 34
and
competition, 119-121
and
credit availability, 121
and
credit volatility, 126
and
cyclicality of credit, 123-124,
127
effects
of, 125
and
efficiency, 121-123
in
Latin America, 120tab,
fig
processes
in trend toward, 119
and
size of banks, 126
and
SME borrowing, 196
Bank franchise values, 33
Bank fundamentals, 110, 113fig,
115
Bank for International Settlements (BIS), 129,
232, 236
Bank management, 82
Bank mergers/sales, 70box,
119
Bank risk, 109-113
Bank runs:
Argentina
(1995), 108, 110
Argentina
(2001), 80, 108-109
contagion,
19
crisis
(2002), 78, 80,
108-109
deposit
insurance’s role in prevention of, 99,
108
liquidity
risk and, 86box
real
exchange rate increases as factor in, 42
regulation
for prevention of, 85
Uruguay
(2002), 80
Banking crises:
Bank
stability, 123, 142
bunching
behavior in, 39-42
causes
of, 13-16, 29-30,
32-34, 78,
89
and
currency crises, 38
damage
caused by, 29
expansion
of credit as factor in, 36,
38-39, 47
financial
liberalization as starting point for, 36,
47
fiscal
costs of, 30-31
liability
dollarization and, 13-16,
39, 42-43,
45, 47
and
long-term growth, 30-31
moral
hazard as cause of, 14, 32-33,
39
policy
recommendations for, 46-48
probability
of, 36
by
region, 30tab, 34,
35tab, 36
safety
net for, 17, 19-20
sudden
stops as cause of, 33, 39-43
systemic,
29
variables
before and after, 37fig,
38fig, 44fig,
45fig
Banking crisis resolution:
constraints
on, 69-71, 74,
78-79, 83
credit
extension controls, 69, 74-75,
82
delays
in, 67
fragility
of Latin American financial systems,
71, 72box, 73
initial
responses for, 79-80
main
objectives for, 67-68
multilateral
organizations support for, 79
options
for bank restructuring, 70box
policies
for, 82-83
political
will for, 68-69, 82
private
parties’ role in, 69,
75-77, 82
public
funds used for, 68, 70-71,
75-77
Bankruptcy:
costs
of, 191-194
creditor
rights during filings for, 164
duration
of procedures for, 166fig
lack
of laws for, 77
threat
of, 183
Banks:
capital
markets’ need for, 4
closure
and consolidation of, 21,
119, 175-176
credit
ratings for, 113-114, 228-234
and
macroeconomic shocks, 13,
108
role
of, 3
share
of financing from, 203-207tabs
unique
characteristics of, 67-68
vulnerabilities
of, 16-17, 142
Basel Capital Accord (1988), 85,
115
Basel Committee for Banking Supervision, 227,
232
Basel Core Principles for Effective Banking Supervision:
compliance
with, 89,
91-92, 233
cross-border
issues, 238
description
of, 90box
developed
vs. developing countries adherence to,
88
Financial
Stability Forum’s endorsement of, 85
supervisory
review, 227
Basel II:
CRB
approach as transition to, 235-236
criteria
for selection of standards, 233-235
cross-border
issues, 238-239
decision
tree, 234fig
implementation
of, 25
Market
Discipline, 227-228, 239
regulation
of foreign banks, 236-237
Regulatory
Requirements, 228-232
Supervisory
Review, 227
Big-push theories, 143
Bismarck, Otto von, 172box
Bolivia:
CPI-indexed
debt, 64
credit
registries, 178box,
181-182
financial
dollarization, 49, 95-96
foreign
banks, 133, 138
housing
finance, 211, 212box,
218-220
money
laundering, 243, 251
state-owned
banks, 148, 152
Bonds:
for
banking crisis resolution, 76-78
for
housing finance, 222
nominal,
64
public,
33, 64
sovereign,
73, 82
as
uninsured liabilities, 108
Borrowers of last resort, 87box
Bounced checks, 166fig
Branches of banks, 130box,
237-238
Brazil:
closing/merger
of banks, 119
credit
registries, 178box,
179-181
debt
indexing, 65box
deposit
insurance, 104
financial
dollarization, 49, 51,
53
foreign
banks, 129, 133,
138
Guarantee
Fund for the Promotion of Competitiveness (FGCP), 201box
housing
finance, 211, 218
invoice
discounting, 198, 199box
money
laundering, 251
PROES,
155box
public
debt and deficit, 18fig
restriction
of dollarization, 65
small
and medium enterprises, 187,
201box
state-owned
banks, 148-149, 151-152,
154, 155box
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