| Description |
1 online resource (42 pages) : illustrations |
| Series |
IMF working paper ; WP/11/186 |
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IMF working paper ; WP/11/186.
|
| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Financial Stability Consequences of Increasing Interconnectedness; A. Network Analysis; B. Banking Crisis Literature; III. Overview of Input Data; A. Measuring Interconnectedness; 1. Movements in Centrality Measures for Selected Countries, 1985Q1-2009Q3; B. Measuring Banking (In)stability; 2. Banking Crises vs. Interconnectedness: A First Look; C. Other Data; IV. Simulations; 3. Simulations: Banking Crises vs. Interconnectedness; 4. Nonparametric Analysis Results: Upstream Interconnectedness |
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5. Global Banking Network: 1977 vs. 2009V. Estimating a Financial Stability Model; A. Parametric Estimation (Probit Model); 1. Parametric Estimates (Probit Model); B. Nonparametric Estimation (Threshold Approach); VI. Concluding Remarks; I. Description of Data Sources and Transformations; II. Measuring Interconnectedness: A Primer; III. Simulation Framework; References; Footnotes |
| Summary |
When a country's banking system becomes more linked to the global banking network, does that system get more or less prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M-shaped relationship between financial stability of a country's banking sector and its interconnectedness. In particular, for banking sectors that are not very connected to the global banking network, increases in interconnectedness are associated with a reduced probability of a banking crisis. Once interconnectedness reaches a certain value, further increases in interconnectedness can increase the probability of a banking crisis. Our findings suggest that it may be beneficial for policies to support greater interlinkages for less connected banking systems, but after a certain point the advantages of increased interconnectedness become less clear |
| Notes |
At head of title: Monetary and Capital Markets Department |
|
"August 2011." |
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Title from PDF title page (IMF Web site, viewed September 13, 2011) |
| Bibliography |
Includes bibliographical references |
| Subject |
Banks and banking, International -- Econometric models
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Financial crises -- Econometric models
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Banks and banking, International -- Econometric models
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Financial crises -- Econometric models
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| Form |
Electronic book
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| Author |
Muñoz, Sònia, 1970- author.
|
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Scuzzarella, Ryan, author.
|
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International Monetary Fund. Monetary and Capital Markets Department, issuing body.
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| ISBN |
1283565463 |
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9781283565462 |
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9781463900625 |
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1463900627 |
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1463900619 |
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9781463900618 |
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9781462309269 |
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1462309267 |
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