IMF Lending and Banking Crises
IMF Working Papers, January 26, 2015
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- Canonical URL
- IMF Lending and Banking Crises
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Bibliographic details
- Authors: Luca Papi, Andrea F Presbitero, Alberto Zazzaro
- Published: January 26, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484308691.001
Study overview
- Authors: Luca Papi, Andrea F Presbitero, Alberto Zazzaro
- Publication: IMF Working Papers, Working Paper No. 2015/019
- Date: January 26, 2015
- Pages: 56
- Period analyzed: 1970-2010
- DOI: https://doi.org/10.5089/9781484308691.001
- ISBN: 9781484308691
- ISSN: 1018-5941
- Issue: 019
- Volume: 2015
- Stock No: WPIEA2015019
Research question and methodology
- Research question:
- What are the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries over the period 1970-2010?
- Methodological approaches:
- Adoption of an instrumental variable strategy to address endogeneity of IMF intervention.
- Use of a propensity score matching estimator.
- Controls for the standard determinants of banking crises.
Key findings
- Main result:
- Countries participating in IMF-supported lending programs are significantly less likely to experience a future banking crisis than nonborrowing countries.
- Additional evidence:
- Compliance with conditionality matters.
- Loan size matters.
Subjects and keywords
- Subject: Banking crises, Currency crises, Financial crises, Financial institutions, Loans, Systemic crises
- Keywords: Banking crises, banking crisis, Conditionality, Currency crises, Global, IMF activity, IMF arrangement, IMF emergency liquidity provision, IMF intervention, IMF loan agreement, IMF presence, IMF program, IMF programs, IMF rescue package, IMF support, lending arrangement, liquidity provision, Loans, Political economy, Systemic crises, WP
Source: IMF Working Paper "IMF Lending and Banking Crises" (Working Paper No. 2015/019) by Luca Papi, Andrea F Presbitero, and Alberto Zazzaro.