Resolving Bank Failures and Institutions: Is there a Link? Some Empirical Evidence

Author/Editor:

Marlon Rawlins ; Luisa Zanforlin

Publication Date:

August 6, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Policymakers across countries have been seeking to strengthen the institutional framework to control fiscal costs and feedback effects to the real economy generated by bank failures. On a cross-section of countries, we find evidence that suggests that bank supervisors’ intervention in bank failures may be positively associated with some aspects of the administrative and regulatory framework. Our results appear to hold also during times of financial instability. Finally, we find some evidence that the same institutional features may be associated with lower fiscal outlays during banking crises.

Series:

Working Paper No. 2021/211

Frequency:

regular

English

Publication Date:

August 6, 2021

ISBN/ISSN:

9781513590837/1018-5941

Stock No:

WPIEA2021211

Pages:

29

Please address any questions about this title to publications@imf.org