Getting the Dog to Bark: Disclosing Fiscal Risks from the Financial Sector
Electronic Access:
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Summary:
Fiscal reporting is intended to warn of fiscal crises while there is still time to prevent them. The recent crisis thus seems to reveal a failure of fiscal reporting: before the crisis, even reports on fiscal risk typically did not mention banks as a possible source of fiscal problems. One reason for silence was that the risk arose partly from implicit guarantees, and governments may have feared that disclosure would increase moral hazard. The crisis cast doubt, however, on the effectiveness of silence in mitigating risks. This paper discusses how fiscal risks from the financial sector could be discussed in reports on fiscal risk, with a view to encouraging their mitigation.
Series:
Working Paper No. 2015/208
Subject:
Banking Economic sectors Financial crises Financial sector Financial sector policy and analysis Financial sector risk Fiscal reporting Fiscal risks Public financial management (PFM)
English
Publication Date:
September 28, 2015
ISBN/ISSN:
9781513507736/1018-5941
Stock No:
WPIEA2015208
Pages:
24
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