IMF Lending and Banking Crises
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Summary:
This paper looks at the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1970-2010. The endogeneity of the IMF intervention is addressed by adopting an instrumental variable strategy and a propensity score matching estimator. Controlling for the standard determinants of banking crises, our results indicate that countries participating in IMF-supported lending programs are significantly less likely to experience a future banking crisis than nonborrowing countries. We also provide evidence suggesting that compliance with conditionality and loan size matter.
Series:
Working Paper No. 2015/019
Subject:
Banking crises Currency crises Financial crises Financial institutions Loans Systemic crises
English
Publication Date:
January 26, 2015
ISBN/ISSN:
9781484308691/1018-5941
Stock No:
WPIEA2015019
Pages:
56
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