Contingent Capital : Economic Rationale and Design Features

Author/Editor:

Ceyla Pazarbasioglu ; Jianping Zhou ; Vanessa Le Leslé ; Michael Moore

Publication Date:

January 25, 2011

Electronic Access:

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Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary:

The causes of the global financial crisis were multi-faceted but revealed still unresolved weaknesses in national and international financial oversight and resolution frameworks. In particular, many governments in the crisis-hit countries had to provide unprecedented levels of support to contain the crisis and protect financial stability. These interventions have not only contributed to a significant increase in sovereign exposures but, in many countries, they have also risked weakening market discipline and worsening moral hazard.

Series:

Staff Discussion Notes No. 11/01

Subject:

English

Publication Date:

January 25, 2011

ISBN/ISSN:

9781462304141/2617-6750

Stock No:

SDNEA2011001

Format:

Paper

Pages:

34

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