Toward An Effective Supervision of Partially Dollarized Banking Systems
The paper presents a supervisory framework that addresses the vulnerabilities of partially dollarized banking systems. The tendency to underprice systemic liquidity risk and currency-induced credit risk creates vulnerabilities that need supervisory responses. The framework seeks to induce agents to better internalize risks by implementing a risk based approach to supervision, following the risk management guidelines of the Basel Committee, and by establishing buffers to cover higher liquidity and solvency risks. The paper also shows that most dollarized countries have addressed their liquidity vulnerabilities, but few have addressed those arising from currency-induced credit risks.
|Date of creation:||01 Jan 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cem Karacadag & Paul J. Heytens, 2001. "An Attempt to Profile the Finances of China's Enterprise Sector," IMF Working Papers 01/182, International Monetary Fund.
- Aaron Tornell & Frank Westermann (ed.), 2005.
"Boom-Bust Cycles and Financial Liberalization,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 9780262201599, June.
- Alain Ize & Andrew Powell, 2003.
"Prudential Responses to De Facto Dollarization,"
Business School Working Papers
defactodollarization, Universidad Torcuato Di Tella.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003.
"Addicted to Dollars,"
NBER Working Papers
10015, National Bureau of Economic Research, Inc.
- Reinhart, Carmen & Calvo, Guillermo, 2002.
"Fear of floating,"
14000, University Library of Munich, Germany.
- De Nicolo, Gianni & Honohan, Patrick & Ize, Alain, 2003.
"Dollarization of the banking system : good or bad?,"
Policy Research Working Paper Series
3116, The World Bank.
- Anne Marie Gulde & David S. Hoelscher & Alain Ize & David Marston & Gianni De NicolÃ³, 2004. "Financial Stability in Dollarized Economies," IMF Occasional Papers 230, International Monetary Fund.
- Alain Ize & Miguel Kiguel & Eduardo Levy Yeyati, 2005. "Managing Systemic Liquidity Risk in Financially Dollarized Economy," Business School Working Papers managsystrisk, Universidad Torcuato Di Tella.
- Morris Goldstein & Philip Turner, 2004. "Controlling Currency Mismatches in Emerging Markets," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 373, December.
- repec:rus:hseeco:123906 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:06/32. 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: (Jim Beardow)or (Hassan Zaidi)
If references are entirely missing, you can add them using this form.