Assessing Financial System Vulnerabilities
IMF Working Papers, April 1, 2000
Source details
- Canonical URL
- Assessing Financial System Vulnerabilities
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Bibliographic details
- Authors: R. B. Johnston, Miss Liliana B Schumacher, Jingqing Chai
- Published: April 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451849868.001
Summary
- Recent financial crises have highlighted the potentially significant macroeconomic costs of financial system instability, and the potential for the instability in the financial system of one country to have broader implications for the stability of financial systems and macroeconomic performance in other countries.
- This paper reviews the different analytical approaches to assessing vulnerabilities in the financial systems and the benefits and limitations of the different approaches, and suggests enhancements that could help strengthen financial system stability assessments.
Analytical approaches and findings
- Reviews different analytical approaches to assessing vulnerabilities in financial systems.
- Discusses the benefits and limitations of the different approaches.
- Emphasizes cross-border spillovers: instability in one country's financial system can affect other countries' financial systems and macroeconomic performance.
- Identifies topical subjects and keywords associated with the analysis:
- Banking, Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Financial sector risk, Financial sector stability, Financial statements, Market risk, Public financial management (PFM), Tax incentives.
- Keywords: asymmetric information, bank exposure, bank portfolio, banking system, Credit risk, Financial sector risk, Financial sector stability, Financial statements, financial system assessment, financial system vulnerabilities, financial system vulnerability, incentive structure, interest rate, market participant, Market risk, net risk, risk model, risk models, risk-management model, risk-measurement model, var model, vulnerability assessment, WP.
Suggested enhancements and policy implications
- Suggests enhancements that could help strengthen financial system stability assessments (enhancements are described in the paper; the landing page highlights that the paper "suggests enhancements" without enumerating them on the page).
Content in this bundle
- Assessing Financial System Vulnerabilities - WP/00/76