Honohan, Patrick2012-08-132012-08-132004-09https://hdl.handle.net/10986/11257Around the world-not just in Latin America -central bankers are looking uneasily at the growing share of foreign currency-denominated deposits in their banking systems. They have a sense that these deposits may not be a good thing, or at least may be a symptom of weaknesses in their financial structures or policies. In some countries spontaneous dollarization of the banking system has long been extensive and well known; in other countries it has been a creeping affair.CC BY 3.0 IGOBALANCE SHEETSBANK DEPOSITSBANKING SYSTEMBANKING SYSTEMSCAPITAL FLIGHTCENTRAL AMERICACENTRAL BANKSCREDIBILITYDEVALUATIONDEVELOPMENT ECONOMICSECONOMETRIC ANALYSISECONOMICSECONOMICS RESEARCHEMERGING ECONOMIESEXCHANGE RATEEXCHANGE RATE FLEXIBILITYEXCHANGE RATE STABILITYEXCHANGE RATESEXPOSUREEXTERNALITIESFINANCIAL DEPTHFINANCIAL INNOVATIONFINANCIAL INTERMEDIARIESFINANCIAL POLICYFINANCIAL SECTORFINANCIAL STRUCTURESFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN CURRENCYFOREIGN EXCHANGEGLOBALIZATIONINCOMEINFLATIONINFLATION RATESINSURANCEINTERMEDIATIONLEGAL TENDERLIABILITYLOCAL CURRENCYM2MACROECONOMIC POLICYMIDDLE EASTMONETARY AUTHORITIESMORAL HAZARDNONPERFORMING LOANSNORTH AFRICAPER CAPITA INCOMEPORTFOLIOSREGRESSION ANALYSISSECURITIESTRANSITION ECONOMIESVOLATILITYWorld Bank10.1596/11257