Interventions in Banks During Banking Crises: The Experience of Indonesia
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Summary:
Interventions in banks are often an integral element of a government’s program for addressing a systemic banking crisis. Interventions may be warranted because the banks are deeply insolvent or riddled with fraud; they may be requiring substantial liquidity support. In some circumstances closures may be more effective than open bank resolution. There were four major sets of bank closures in Indonesia between November 1997 and March 1999. The initial closures were subject to criticism, but the more recent ones were viewed more positively. This paper looks at these experiences, and draws conclusions about closing banks in a systemic crisis.
Series:
Policy Discussion Paper No. 2000/002
Subject:
Asset and liability management Bank resolution Banking Banking crises Blanket guarantee Commercial banks Financial crises Financial institutions Liquidity
English
Publication Date:
March 1, 2000
ISBN/ISSN:
9781451974461/1564-5193
Stock No:
PPIEA0022000
Pages:
31
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