Arbeitspapier
The role of state intervention in the financial sector: Crisis prevention, containment, and resolution
This paper discusses the role of state intervention for prevention, containment, and resolution of financial crises based mainly on the Korean experience during the 1997 Asian financial crisis. Crises in emerging market and developing economies tend to be more complicated than those faced by advanced economies because they are twin crises: financial and currency crises. Such crises require the development of a comprehensive strategy covering the stabilization of the domestic financial market and the foreign exchange market, closely coordinated responses by different government bodies, an extraordinary effort for financial restructuring, and the introduction of a new regulatory framework. This effort should be based on an effective crisis management team of experts given a clear mandate with well defined power; strong political support; effective communication with the market players, both domestic and foreign; and sufficient mobilization of public funds. In this regard, this paper emphasizes the importance of building a reliable information base, prompt actions, orchestrating political consensus, and a balanced approach to restructuring and regulation among different types of financial institutions. The paper also highlights the need for a new international financial architecture matching the rapid integration into the global market of the financial markets of emerging and developing economies while their currency remains non-convertible.
- Sprache
-
Englisch
- Erschienen in
-
Series: ADBI Working Paper ; No. 196
Central Banks and Their Policies
Financial Crises
General Financial Markets: Government Policy and Regulation
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
International Lending and Debt Problems
Financial Aspects of Economic Integration
Economic History: Financial Markets and Institutions: General, International, or Comparative
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Kapitalmarktliberalisierung
Regulierung
Finanzsektor
Wirkungsanalyse
Asien
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:25 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Cho, Yoon Je
- Asian Development Bank Institute (ADBI)
Entstanden
- 2010
Ähnliche Objekte (12)
Responding to the Global Financial and Economic Crisis: Meeting the Challenges in Asia
Determinants of Financial Stress in Emerging Market Economies
Federal reserve policies and financial market conditions during the crisis
Origins and Resolution of Financial Crises; Lessons from the Current and Northern European Crises
Towards a macroprudential surveillance and remedial policy formulation system for monitoring financial crisis
Financial crisis, trade finance, and SMEs: Case of Central Asia
Financial inclusion and financial literacy in Kazakhstan
Reform of the global financial architecture
Twenty years after the financial crisis in the Republic of Korea
Crises, capital controls, and financial integration
International financial reforms: Capital standards, resolution regimes and supervisory colleges, and their effect on emerging markets
Financial development: A broader perspective
Responding to the Global Financial and Economic Crisis: Meeting the Challenges in Asia
Determinants of Financial Stress in Emerging Market Economies
Federal reserve policies and financial market conditions during the crisis
Origins and Resolution of Financial Crises; Lessons from the Current and Northern European Crises
Towards a macroprudential surveillance and remedial policy formulation system for monitoring financial crisis
Financial crisis, trade finance, and SMEs: Case of Central Asia
Financial inclusion and financial literacy in Kazakhstan
Reform of the global financial architecture
Twenty years after the financial crisis in the Republic of Korea
Crises, capital controls, and financial integration
International financial reforms: Capital standards, resolution regimes and supervisory colleges, and their effect on emerging markets
Financial development: A broader perspective
Responding to the Global Financial and Economic Crisis: Meeting the Challenges in Asia
Determinants of Financial Stress in Emerging Market Economies
Federal reserve policies and financial market conditions during the crisis
Origins and Resolution of Financial Crises; Lessons from the Current and Northern European Crises
Towards a macroprudential surveillance and remedial policy formulation system for monitoring financial crisis
Financial crisis, trade finance, and SMEs: Case of Central Asia
Financial inclusion and financial literacy in Kazakhstan
Reform of the global financial architecture
Twenty years after the financial crisis in the Republic of Korea
Crises, capital controls, and financial integration
International financial reforms: Capital standards, resolution regimes and supervisory colleges, and their effect on emerging markets