Publication:
Safe and Sound Banking : A Role for Countercyclical Regulatory Requirements?

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dc.contributor.authorCaprio, Gerard, Jr.
dc.date.accessioned2014-09-02T17:17:30Z
dc.date.available2014-09-02T17:17:30Z
dc.date.issued2010-02
dc.description.abstractMost explanations of the crisis of 2007-2009 emphasize the role of the preceding boom in real estate and asset markets in a variety of advanced countries. As a result, an idea that is gaining support among various groups is how to make Basel II or any regulatory regime less pro-cyclical. This paper addresses the rationale for and likely contribution of such policies. Making provisioning (or capital) requirements countercyclical is one way potentially to address pro-cyclicality, and accordingly it looks at the efforts of the authorities in Spain and Colombia, two countries in which countercyclical provisioning has been tried, to see what the track record has been. As explained there, these experiments have been at best too recent and limited to put much weight on them, but they are much less favorable for supporting this practice than is commonly admitted. The paper then addresses concerns and implementation issues with countercyclical capital or provisioning requirements, including why their impact might be expected to be limited, and concludes with recommendations for developing country officials who want to learn how to make their financial systems less exposed to crises.en
dc.identifierhttp://documents.worldbank.org/curated/en/2010/02/11738795/safe-sound-banking-role-countercyclical-regulatory-requirements
dc.identifier.doi10.1596/1813-9450-5198
dc.identifier.urihttps://hdl.handle.net/10986/19916
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 5198
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTING
dc.subjectACCOUNTING SYSTEMS
dc.subjectADVANCED COUNTRIES
dc.subjectAGENCY PROBLEM
dc.subjectARBITRAGE
dc.subjectASSET MARKETS
dc.subjectASSET PRICE
dc.subjectASSET PRICES
dc.subjectASSET SALES
dc.subjectAUDITORS
dc.subjectBAILOUT
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK
dc.subjectBANK ASSETS
dc.subjectBANK BEHAVIOR
dc.subjectBANK CREDITORS
dc.subjectBANK LOAN
dc.subjectBANK LOANS
dc.subjectBANK MANAGEMENT
dc.subjectBANK OF SPAIN
dc.subjectBANK POLICY
dc.subjectBANK REGULATION
dc.subjectBANK RISK TAKING
dc.subjectBANK SUPERVISION
dc.subjectBANK SUPERVISORS
dc.subjectBANKER
dc.subjectBANKERS
dc.subjectBANKING
dc.subjectBANKING CRISIS
dc.subjectBANKING SUPERVISION
dc.subjectBANKING SYSTEM
dc.subjectBANKING SYSTEMS
dc.subjectBANKS
dc.subjectBASIS POINTS
dc.subjectBILLS OF EXCHANGE
dc.subjectBINDING CONSTRAINT
dc.subjectBIS
dc.subjectBORROWER
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL
dc.subjectCAPITAL RATIO
dc.subjectCAPITAL RATIOS
dc.subjectCAPITAL REGULATION
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCDS
dc.subjectCENTRAL BANKING
dc.subjectCENTRAL BANKS
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL CREDIT
dc.subjectCOMMON CURRENCY AREAS
dc.subjectCOMMUNICATION
dc.subjectCOMPLEX SECURITIES
dc.subjectCONSUMPTION
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE PAPER
dc.subjectCOST OF CREDIT
dc.subjectCREDIT
dc.subjectCREDIT CRUNCH
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCREDIT EXPANSION
dc.subjectCREDIT GROWTH
dc.subjectCREDIT LINES
dc.subjectCREDIT MARKETS
dc.subjectCREDIT RATING
dc.subjectCREDIT RATING AGENCIES
dc.subjectCREDIT RATINGS
dc.subjectCREDIT RISK
dc.subjectCREDITORS
dc.subjectCREDITWORTHY BORROWERS
dc.subjectCURRENCIES
dc.subjectCURRENCY
dc.subjectCURRENT PRICES
dc.subjectDEBT
dc.subjectDEBTORS
dc.subjectDEFAULT PREMIUM
dc.subjectDEFAULT PROBABILITIES
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMICS
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET DEBT
dc.subjectEUROPEAN CENTRAL BANK
dc.subjectEXCHANGE
dc.subjectFACE AMOUNT
dc.subjectFACE VALUE
dc.subjectFACTORS
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE BANK OF ATLANTA
dc.subjectFIDUCIARY STANDARDS
dc.subjectFINANCE
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INNOVATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL POLICIES
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFINANCING
dc.subjectFORECASTING
dc.subjectFORMAL FINANCIAL SECTOR
dc.subjectFORMS OF DEBT
dc.subjectFUND MANAGERS
dc.subjectFUTURE
dc.subjectGLOBAL BANKING
dc.subjectGOOD
dc.subjectGOVERNANCE
dc.subjectGOVERNMENT FUNDS
dc.subjectGOVERNMENT SPENDING
dc.subjectGOVERNMENTS
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectHOME OWNERSHIP
dc.subjectHOUSING
dc.subjectHOUSING PRICES
dc.subjectINCOME
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFORMATION
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINSTRUMENTS
dc.subjectINSURANCE AGENCY
dc.subjectINTEREST
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKING
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTMENT
dc.subjectINVESTMENT BANKS
dc.subjectINVESTMENT VEHICLES
dc.subjectINVESTORS
dc.subjectLAND
dc.subjectLAWS
dc.subjectLEGISLATION
dc.subjectLENDING
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOAN OFFICERS
dc.subjectLOAN PROVISIONING
dc.subjectLOANS
dc.subjectLONG-TERM INTEREST
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET RISKS
dc.subjectMARKETS
dc.subjectMATURITY
dc.subjectMATURITY MISMATCHES
dc.subjectMINIMUM CAPITAL REQUIREMENTS
dc.subjectMONETARY AUTHORITIES
dc.subjectMONETARY POLICY
dc.subjectMONEY SUPPLY
dc.subjectMORAL SUASION
dc.subjectMORTGAGE
dc.subjectMORTGAGE BROKERS
dc.subjectMORTGAGE MARKET
dc.subjectNET WORTH
dc.subjectNONBANKS
dc.subjectOPTION
dc.subjectOPTIONS
dc.subjectPAYMENT
dc.subjectPAYMENT OF INTEREST
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPHYSICAL CAPITAL
dc.subjectPORTFOLIO
dc.subjectPRESENT VALUE
dc.subjectPRICE STABILITY
dc.subjectPRICE VOLATILITY
dc.subjectPRICING
dc.subjectPRINCIPAL
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPROFITS
dc.subjectPRUDENTIAL REGULATION
dc.subjectPUBLIC DEBT
dc.subjectRATE OF RETURN
dc.subjectRATES OF RETURN
dc.subjectRATING AGENCIES
dc.subjectREAL ESTATE
dc.subjectRECESSION
dc.subjectRECESSIONS
dc.subjectREGULATORY AGENCIES
dc.subjectREGULATORY AUTHORITIES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY POLICY
dc.subjectREGULATORY REGIME
dc.subjectREGULATORY REQUIREMENTS
dc.subjectREGULATORY STANDARDS
dc.subjectREGULATORY SYSTEM
dc.subjectRISK
dc.subjectRISK AVERSION
dc.subjectRISK EXPOSURE
dc.subjectRISK EXPOSURES
dc.subjectRISK PREMIA
dc.subjectRISK PROFILES
dc.subjectRISK TAKING
dc.subjectRISK WEIGHTS
dc.subjectRISK-BASED PRICING
dc.subjectSAFETY NETS
dc.subjectSAVINGS
dc.subjectSAVINGS BANK
dc.subjectSECURITIES
dc.subjectSECURITIZATION
dc.subjectSHARE
dc.subjectSHAREHOLDERS
dc.subjectSPECULATIVE BUBBLES
dc.subjectSTOCK
dc.subjectSUPERVISORY AGENCIES
dc.subjectSUPERVISORY AUTHORITIES
dc.subjectSUPERVISORY POWERS
dc.subjectSYSTEMIC RISK
dc.subjectTOTAL DEBT
dc.subjectTRACK RECORD
dc.subjectTRANSACTIONS
dc.subjectTRANSACTIONS COSTS
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATES
dc.subjectUSURY
dc.subjectVALUE
dc.subjectVALUE OF COLLATERAL
dc.titleSafe and Sound Banking : A Role for Countercyclical Regulatory Requirements?en
dspace.entity.typePublication
okr.crossref.titleSafe And Sound Banking : A Role For Countercyclical Regulatory Requirements ?
okr.date.disclosure2010-02-28
okr.date.doiregistration2025-04-10T11:57:02.603797Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2010/02/11738795/safe-sound-banking-role-countercyclical-regulatory-requirements
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid784681468169149791
okr.identifier.doi10.1596/1813-9450-5198
okr.identifier.externaldocumentum000158349_20100203114123
okr.identifier.internaldocumentum11738795
okr.identifier.reportWPS5198
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/02/03/000158349_20100203114123/Rendered/PDF/WPS5198.pdfen
okr.sectorFinance :: General finance sector
okr.themeFinancial and private sector development :: Other financial and private sector development
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitFinance and Private Sector Development Team, Development Research Group
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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