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Banking system failures in developing and transition countries: Diagnosis and predictions

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  • Patrick Honohan

    (Trinity College Dublin - Department of Economics)

Abstract

Understanding what caused the recent costly wave of banking system failures in developing and transition economies is the key to preventing a recurrence. It is important to distinguish between epidemics of the macroeconomic and micro-economic varieties, and between these and the syndrome of endemic failure, associated with pervasive government involvement. Each type has its characteristic warning signs - the availability of the relevant indicators is discussed in some detail - and a comprehensive prevention policy must take account of each.

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  • Patrick Honohan, 1997. "Banking system failures in developing and transition countries: Diagnosis and predictions," BIS Working Papers 39, Bank for International Settlements.
  • Handle: RePEc:bis:biswps:39
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