Hidden Bibliographic Details
| Other authors / contributors: | Shinagawa, Yoko (Economist), author.
International Monetary Fund. Statistics Department, issuing body.
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| ISBN: | 9781484386958
1484386957
9781484387245
1484387244
9781484386880
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| Notes: | At head of title: Statistics Department.
"January 2014."
Includes bibliographical references.
Online resource; title from pdf title page (IMF.org Web site, viewed Jan. 31, 2014).
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| Summary: | "Better "financial soundness" of banks could help mitigate the volatility of financial cycles by reducing banks' risk exposure. But trying to improve financial soundness in the midst of a downturn can do the opposite--further aggravating the contraction of credit. Consistent with this notion, the paper found that better initial scores in certain financial soundness indicators (FSIs) are associated with milder and shorter downturns; and improving FSIs during a downturn worsens the shrinkage of credit and amplifies the cycle. In this context, our results suggest that policy makers should be mindful about the timing of regulating changes in banks' FSIs. --Abstract.
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