Banking Crises in Latin America in the 1990's: Lessons From Argentina, Paraguay, and Venezuela

Author/Editor:

Alicia García-Herrero

Publication Date:

October 1, 1997

Electronic Access:

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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:

Recent banking crises in Argentina, Paraguay, and Venezuela suggest that the macroeconomic impact is influenced by the causes of the crisis, the exchange rate regime, the degree of dollarization, and the structure of the banking system. Crises stemming from both macroeconomic and bank-specific causes had the largest macroeconomic impact. Countries with high dollarization and a large share of foreign and government-owned banks maintained a more stable deposit base, at least temporarily, by shifting to dollar-denominated deposits and foreign and government-owned banks. Countries that responded with a rapid, consistent, and comprehensive policy response reduced the negative macroeconomic consequences of their crises.

Series:

Working Paper No. 1997/140

Subject:

Bank deposits Banking Banking crises Commercial banks Credit Financial crises Financial institutions Monetary policy Money Reserve requirements

English

Publication Date:

October 1, 1997

ISBN/ISSN:

9781451856095/1018-5941

Stock No:

WPIEA1401997

Pages:

70

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