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Banking, financial integration, and international crises : an overview

  • Leonardo Hernández
  • Klaus Schmidt-Hebbel

This paper summarizes new research on the relationship among institutions, financial development, economic growth, financial integration, and the likelihood of boom-bust cycles and banking crises. The first part of the paper reviews issues pertaining mainly to the banking sector, and summarizes new findings regarding banking regulation and supervision and the behavior of depositors and other market participants. New findings on the internationalization of banking, boom-bust cycles and macro-financial linkages during financial integration, the elements of international financial crises, and the role of capital controls to reduce macroeconomic vulnerability are reviewed in the second part of the paper.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 100.

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Date of creation: Jul 2001
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Handle: RePEc:chb:bcchwp:100
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  14. Levine, Ross & Zervos, Sara, 1996. "Stock markets, banks, and economic growth," Policy Research Working Paper Series 1690, The World Bank.
  15. Steven Radelet & Jeffrey Sachs, 1998. "The Onset of the East Asian Financial Crisis," NBER Working Papers 6680, National Bureau of Economic Research, Inc.
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  28. Velasco, Andres, 1987. "Financial crises and balance of payments crises : A simple model of the southern cone experience," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 263-283, October.
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  31. Denizer, Cevdet, 2000. "Foreign entry in Turkey's banking sector, 1980-97," Policy Research Working Paper Series 2462, The World Bank.
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  33. repec:idb:wpaper:318 is not listed on IDEAS
  34. Giancarlo Corsetti & Paolo Pesenti & Nouriel Roubini, 1998. "What Caused the Asian Currency and Financial Crisis? Part I: A Macroeconomic Overview," NBER Working Papers 6833, National Bureau of Economic Research, Inc.
  35. Francisco d Nadal De Simone & Piritta Sorsa, 1999. "A Review of Capital Account Restrictions in Chile in the 1990s," IMF Working Papers 99/52, International Monetary Fund.
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