Advanced Search
MyIDEAS: Login

Managing Risks to Financial Markets from Volatile Capital Flows: The Role of Prudential Regulation

Contents:

Author Info

  • Garber, Peter M

Abstract

Prudential regulation is intended to channel capital inflows through institutions most likely to make sound investment decisions. The paper presents examples of prudential regulation in two countries, Mexico and Hong Kong, where capital was suddenly withdrawn in a test of the financial system. Especially under modern conditions, a risk-taking bank can avoid prudential regulation, which on paper is near the industrial country standard; and the case of Mexico shows how even the best intended regulation can be avoided and can even produce a result that is the opposite of their intent. The existence of offshore markets, particularly OTC derivative markets, makes on-shore regulation problematic in the absence of stringent, consolidated supervision. In addition, they have rendered meaningless the subaccounts of the standard balance of payments capital accounts. Copyright @ 1996 by John Wiley & Sons, Ltd. All rights reserved.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www3.interscience.wiley.com/cgi-bin/jtoc?ID=15416
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal International Journal of Finance & Economics.

Volume (Year): 1 (1996)
Issue (Month): 3 (July)
Pages: 183-95

as in new window
Handle: RePEc:ijf:ijfiec:v:1:y:1996:i:3:p:183-95

Contact details of provider:
Web page: http://www.interscience.wiley.com/jpages/1076-9307/

Order Information:
Web: http://jws-edcv.wiley.com/jcatalog/JournalsCatalogOrder/JournalOrder?PRINT_ISSN=1076-9307

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Barry Eichengreen, 2000. "International Economic Policy in the Wake of the Asian Crisis," International Finance 0003005, EconWPA.
  2. Peter M. Garber, 1998. "Derivatives in International Capital Flows," NBER Working Papers 6623, National Bureau of Economic Research, Inc.
  3. Paolo Savona & Aurelio Maccario & Chiara Oldani, 2000. "On Monetary Analysis of Derivatives," Open Economies Review, Springer, vol. 11(1), pages 149-175, August.
  4. Peter M. Garber, 1997. "Transition to a Functional Financial Safety Net in Latin America," Research Department Publications 4056, Inter-American Development Bank, Research Department.
  5. Peter M. Garber, 1997. "Transición a una red funcional de seguridad financiera en América Latina," Research Department Publications 4057, Inter-American Development Bank, Research Department.
  6. Chiara Oldani, 2005. "An Overview of the Literature about Derivatives," Macroeconomics 0504004, EconWPA.
  7. Demirguc-Kunt, Asli & Detragiache, Enrica, 1997. "The determinants of banking crises : evidence from industrial and developing countries," Policy Research Working Paper Series 1828, The World Bank.
  8. Gianni De Nicoló & Patrick Honohan & Alain Ize, 2003. "Dollarization of the Banking System: Good or Bad?," IMF Working Papers 03/146, International Monetary Fund.
  9. Clara Garcia, 2004. "Capital Inflows, Policy Responses, and Their Ill Consequences: Thailand, Malaysia, and Indonesia in the Decade Before the Crises," Working Papers wp81, Political Economy Research Institute, University of Massachusetts at Amherst.
  10. Jean-Pierre Allegret, 2000. "Quel role pour les controles des mouvements internationaux de capitaux ?," Economie Internationale, CEPII research center, issue 81, pages 77-108.
  11. Graham Bird, 1999. "How important is sound domestic macroeconomics in attracting capital inflows to developing countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(1), pages 1-26.
  12. Nicolo, Gianni De & Honohan, Patrick & Ize, Alain, 2005. "Dollarization of bank deposits: Causes and consequences," Journal of Banking & Finance, Elsevier, vol. 29(7), pages 1697-1727, July.
  13. Weller, Christian E. & von Hagen, Jürgen, 1999. "Financial fragility or what went right and what could go wrong in central European banking?," ZEI Working Papers B 13-1999, ZEI - Center for European Integration Studies, University of Bonn.
  14. Sebastian Edwards, 1998. "Capital Inflows into Latin America: A Stop-Go Story?," NBER Working Papers 6441, National Bureau of Economic Research, Inc.
  15. Islam, Roumeen, 2000. "Should capital flows be regulated? - a look at the issues and policies," Policy Research Working Paper Series 2293, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ijf:ijfiec:v:1:y:1996:i:3:p:183-95. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.