A National Wealth Approach to Banking Crises and Financial Stability
IMF Working Papers, July 5, 2016
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Bibliographic details
- Authors: Olivier M Frecaut
- Published: July 5, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498349154.001
Summary
- The paper explores a different, supplementary way to assess and manage a particular type of banking crises, those arising from a rise of nonperforming loans to the corporate sector.
- It relies on a “national wealth approach,” focusing on the distribution of net wealth among economic sectors and its interaction with developments in the banking system.
- It identifies avenues for policy response optimization, based on an integrated macrofinancial analytical framework, both for the prevention and the resolution of these types of economic events.
Analytical focus and findings
- Focus: distribution of net wealth among economic sectors and interaction with banking system developments.
- Crisis type analyzed: banking crises arising from a rise of nonperforming loans to the corporate sector.
- Analytical framework: integrated macrofinancial analytical framework linking national accounts, financial statements, and banking-sector indicators.
- Emphasis on metrics and concepts appearing in the paper: bank borrower, bank capital, bank data, collection capability, financial condition, profitability data, value creation, orphan financial assets, income statement, national accounts.
Policy implications and recommendations
- Identifies avenues for policy response optimization for both prevention and resolution of corporate-sector nonperforming-loan banking crises.
- Policy responses are framed within an integrated macrofinancial approach that links sectoral net wealth distribution to banking-sector stability.
Subjects and keywords
- Subject: Banking; Banking crises; Commercial banks; Financial crises; Financial institutions; Financial sector policy and analysis; Financial sector stability; Financial statements; National accounts; Public financial management (PFM)
- Keywords: bank borrower, bank capital, bank data, Banking crises, Banking sector distress, banking sector issue, collection capability, Commercial banks, financial condition, Financial sector stability, Financial statements, Global, income statement, Macro-financial analysis integration, National accounts, orphan financial assets, profitability data, value creation, work agenda, WP
Source: IMF Working Paper No. 2016/128, "A National Wealth Approach to Banking Crises and Financial Stability", July 5, 2016.