Independent Evaluation Group2017-08-292017-08-292009https://hdl.handle.net/10986/28065A worldwide financial crisis of enormous magnitude continues to unfold rapidly. Unlike other crises in recent decades, the current episode is rooted in industrial countries' financial systems and is affecting low-income and middle-income countries (MICs) alike. Defaults on securitized sub-prime mortgages as a real estate market bubble burst led to failures or near-failures of several large financial institutions and a collapse of inter-bank and commercial paper markets. A tightening of credit, combined with declining consumer confidence, has brought on worldwide recession with growing unemployment, and many fear that the downturn will be severe and protracted. At the same time, the rapidly multiplying signs of contraction are prompting strong responses, including fiscal stimulus packages and reductions in benchmark lending rates, on the part of several of the affected developed countries. The Bank Group is well placed to help mitigate the impact of the current crisis with financing and advisory services, and its clients are already requesting increased support. A rapid, high-quality response that combines financial and advisory support can do much to ease the inevitable ramifications of the crisis. Lessons from evaluations of previous Bank Group responses to past crises can help inform the response to the current crisis in order to increase its effectiveness.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADVERSE EFFECTSADVISORY SERVICESBALANCE SHEETBANK LENDINGBANKING CRISESBANKING CRISISBANKING INVESTMENTSBANKING SECTORBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKSBENEFICIARIESBIDBONDHOLDERSBORROWINGBROKERBUSINESS OPPORTUNITIESCAPACITY DEVELOPMENTCIVIL SERVICECLIENT COUNTRYCOMMERCIAL BANKCOMMERCIAL BANK LOANSCOMMERCIAL BANKSCOMMERCIAL PAPERCOMMERCIAL PAPER MARKETSCONFLICTS OF INTERESTCONSOLIDATIONCONSUMER CONFIDENCECONTINGENCY PLANSCORPORATE FINANCECORPORATE GOVERNANCECOUNTRY CREDITCREDIT BUREAUSCREDIT NEEDSCREDIT RATINGCREDIT RATING AGENCIESCREDIT RATINGSCREDITORCREDITORSCREDITSCRISIS COUNTRIESCRISIS LENDINGDEBTDEBT ISSUESDEBTSDEFAULTSDEMONSTRATION EFFECTSDERIVATIVEDERIVATIVE INSTRUMENTSDEVALUATIONDEVELOPING COUNTRIESDISBURSEMENTSDISTRESSED BANKSECONOMIC CONDITIONSECONOMIC CRISESECONOMIC DIFFICULTIESECONOMIC GROWTHEMERGING MARKETSEMPLOYMENTENVIRONMENTAL PROTECTIONEQUITY CAPITALEQUITY FUNDEQUITY FUNDINGEQUITY FUNDSEQUITY INVESTMENTEQUITY INVESTMENTSEXCHANGE RATEEXPENDITUREEXPORT CREDITSEXPORT GROWTHEXPOSUREEXTERNAL DEBTEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL SHOCKFINANCE COMPANIESFINANCE CORPORATIONFINANCIAL ASSISTANCEFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DIFFICULTIESFINANCIAL DISTRESSFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL REFORMSFINANCIAL RESTRUCTURINGFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR REFORMFINANCIAL SECTOR REFORMSFINANCIAL SECTORSFINANCIAL STRESSFINANCIAL SUPPORTFINANCIAL SYSTEMSFISCAL CONDITIONSFISCAL POLICYFISCAL REFORMFISCAL REFORMSFOREIGN BANKFOREIGN BANKSFOREIGN DEBTFOREIGN DEBTSFUTURESFUTURES CONTRACTSGLOBAL TRADEGOVERNANCE PRACTICESGOVERNMENT ACTIONGROWTH OPPORTUNITIESGUARANTEE AGENCYHOST GOVERNMENTSHOUSEHOLDSILLIQUIDITYINCOMEINDUSTRIAL COUNTRIESINFRASTRUCTURE PROJECTSINSTITUTIONAL REFORMINSURANCEINTERNAL AUDITINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTMENT LOANINVESTMENT OPPORTUNITIESINVESTMENT PORTFOLIOLABOR MARKETLARGE BORROWERSLEGAL FRAMEWORKLIQUIDITY ASSISTANCELOANLOAN FINANCINGLOAN LOSS PROVISIONSLOAN SYNDICATIONSLOCAL CURRENCYLOCAL MARKETLOW-INCOME COUNTRIESMACROECONOMIC CONDITIONSMACROECONOMIC CRISISMACROECONOMIC POLICIESMACROECONOMIC POLICYMANAGEMENT INFORMATION SYSTEMSMARKET CONDITIONSMARKET CONFIDENCEMICROENTERPRISESMIDDLE-INCOME COUNTRIESMONETARY FUNDMORTGAGESNEW BUSINESSNEW COMPANIESNUTRITIONOPPORTUNITY COSTOUTPUTOUTPUTSPENSIONPENSION REFORMPOLICY RESPONSEPOLITICAL RISKPORTFOLIOPORTFOLIO QUALITYPOVERTY ALLEVIATIONPRIVATE FINANCINGPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPROTECTION MEASURESPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESRATING AGENCIESREAL ESTATEREAL SECTORRECAPITALIZATIONRECESSIONREGIONAL BANKSREGULATORY CAPACITYREGULATORY INFRASTRUCTURERENEGOTIATIONRENEWABLE ENERGYREPUTATIONRESERVESRETURNRISK MANAGEMENTRISK MITIGATIONRISK PERCEPTIONSRISK TAKINGSAFETY NETSHAREHOLDERSHAREHOLDERSSHORT-TERM FINANCESHORT-TERM LIQUIDITYSMALL BORROWERSSOCIAL INVESTMENTSOCIAL PROTECTIONSOCIAL SAFETY NETSOCIAL SAFETY NETSSOCIAL SECURITYSOURCES OF FINANCESTATE ENTERPRISESSTRUCTURAL ADJUSTMENTSYSTEMIC RISKSTRACK RECORDTRADE FINANCETRADE FINANCINGTRADE LIBERALIZATIONTRADINGTRANSITION ECONOMIESTRANSPARENCYTREASURYUNEMPLOYMENTUNIONWorking PaperWorld Bank10.1596/28065