The Crisis in the Financial Sector and the Authorities' Reaction : The Case of the Philippines

Author/Editor:

Jean-Claude Nascimento

Publication Date:

March 1, 1990

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:

The paper discusses the crisis in the Philippines financial sector that began on a limited scale in 1981 and culminated in a significant contraction of the financial system in 1986. The causes, manifestation and transmission mechanism of the crisis are analyzed and reactions of the authorities to the crisis are examined. The main conclusion is that weaknesses of the regulatory framework and loose banking practices provoked and exacerbated the crisis, while the political and economic climate during 1979-83 also played a key role. In the end, the authorities’ interventions to contain the crisis was sucessful but costly.

Series:

Working Paper No. 90/26

Subject:

English

Publication Date:

March 1, 1990

ISBN/ISSN:

9781451981704/1018-5941

Stock No:

WPIEA0261990

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

72

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