Banking, financial integration, and international crises
During the past decade has enhanced market discipline but also caused greater strain in many emerging market economies' financial sectors, especially their banking systems. The potential benefits of financial integration, although large in the long run, may be outweighed in the short run if the transition process is inadequately managed and countries end up in a crisis. There is great need, especially among policy makers in developing countries, for policy advice on how to become financially integrated without increasing macro financial vulnerability. This book attempts to partly fulfill this need by presenting new research on the relationship among institutional development, financial development, economic growth, boom-bust cycles and banking crises. Since understanding these relationships is essential to properly manage the transition towards full financial integration, this book should be of interest to policy makers and development economists alike.Banking, financial integration, and international crises: an overview / Leonardo Hernández, Klaus Schmidt-Hebbel -- Financial intermediation and growth: causality and causes / Ross Levine, Norman Loayza, Thorsten Beck -- Politics and the determinants of banking crises: the effects of political checks and balances / Philio Keefer -- Financial regulation and performance: cross-country evidence / James R. Barth, Gerard Caprio, Jr., Ross Levine -- Do depositors punish banks for bad behavior? market discipline, deposit insurance, and banking crises / María Soledad Martínez-Peria, Sergio L. Schmukler -- Some measures of financial fragility in the chilean banking system: an early warning indicators application / Antonio Ahumada C., Carlos Budnevich L. -- Capital inflows, credit booms, and macroeconomic vulnerability: the cross-country experience / Leonardo Hernández, Oscar Landerretche -- Asset prices in Chile: facts and fads / Raphael Bergoeing, Felipe Morandé, Raimundo Soto -- Overshootings and reversals: the role of monetary policy / Ilan Goldfajn, Poonam Gupta -- Japanese banking problems: implications for Southeast Asia / Joe Peek, Eric S. Rosengren -- Market discipline and exuberant foreign borrowing / Eduardo Fernández-Arias, Davide Lombardo -- Capital controls in Chile: were they effective? / Francisco Gallego, Leonardo Hernández, Klaus Schmidt-Hebbel -- The 1997-98 liquidity crisis: Asia versus Latin America / Roberto Chang, Andrés Velasco.