Financial soundness indicators and the characteristics of financial cycles /

Financial soundness indicators and the characteristics of financial cycles /

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Bibliographic Details
Author / Creator:	Che, Natasha Xingyuan, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2014.
Description:	1 online resource (26 pages)
Language:	English
Series:	IMF working paper ; WP/14/14 IMF working paper ; WP/14/14.
Subject:	Banks and banking -- Econometric models. Business cycles -- Econometric models. Risk -- Econometric models. Banks and banking -- Econometric models. Business cycles -- Econometric models. Risk -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12502465

Hidden Bibliographic Details
Other authors / contributors:	Shinagawa, Yoko (Economist), author. International Monetary Fund. Statistics Department, issuing body.
ISBN:	9781484386958 1484386957 9781484387245 1484387244 9781484386880
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).
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.

Description
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.
Item Description:	At head of title: Statistics Department. "January 2014."
Physical Description:	1 online resource (26 pages)
Bibliography:	Includes bibliographical references.
ISBN:	9781484386958 1484386957 9781484387245 1484387244 9781484386880