The Global Financial Crisis and its Impact on the Chilean Banking System

April 1, 2010

Preview Citation

Format: Chicago

Jorge A Chan-Lau. The Global Financial Crisis and its Impact on the Chilean Banking System, (USA: International Monetary Fund, 2010) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper explores how the global turmoil affected the risk of banks operating in Chile, and provides evidence that could help strengthen work on vulnerability indicators and off-site supervision. The analysis is based on the study of default risk codependence, or CoRisk, between Chilean banks and global financial institutions. The results suggest that the impact of the global financial crisis was limited, inducing at most a one-rating downgrade to banks operating in Chile. The paper concludes by assessing government measures aimed at reducing systemic risk in the domestic banking sector and the recommendations to allocate SWF assets to domestic banks.

Subject: Bank deposits, Banking, Commercial banks, Debt default, Foreign banks

Keywords: Bank, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/108
Stock No:

WPIEA2010108
ISBN:

9781455200672
ISSN:

1018-5941

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