04752oam 22012254 450 991078834290332120230721045628.01-4623-9312-81-282-84201-31-4518-7108-21-4527-4503-X9786612842016(CKB)3170000000055145(SSID)ssj0001488770(PQKBManifestationID)11995298(PQKBTitleCode)TC0001488770(PQKBWorkID)11463816(PQKB)10255187(OCoLC)460638675(MiAaPQ)EBC1586707(IMF)WPIEE2008250(EXLCZ)99317000000005514520020129d2008 uf 0engurcnu||||||||txtccrThe Use of Blanket Guarantees in Banking Crises /Luc Laeven, Fabian ValenciaWashington, D.C. :International Monetary Fund,2008.1 online resource (45 pages) illustrations, tablesIMF Working PapersIMF working paper ;WP/08/250Bibliographic Level Mode of Issuance: Monograph1-4519-1561-6 Includes bibliographical references.In episodes of significant banking distress or perceived systemic risk to the financial system, policymakers have often opted for issuing blanket guarantees on bank liabilities to stop or avoid widespread bank runs. In theory, blanket guarantees can prevent bank runs if they are credible. However, guarantee could add substantial fiscal costs to bank restructuring programs and may increase moral hazard going forward. Using a sample of 42 episodes of banking crises, this paper finds that blanket guarantees are successful in reducing liquidity pressures on banks arising from deposit withdrawals. However, banks' foreign liabilities appear virtually irresponsive to blanket guarantees. Furthermore, guarantees tend to be fiscally costly, though this positive association arises in large part because guarantees tend to be employed in conjunction with extensive liquidity support and when crises are severe.IMF Working Papers; Working Paper ;No. 2008/250Bank failuresFinancial crisesMoral hazardDeposit insuranceBanks and BankingimfExports and ImportsimfFinance: GeneralimfFinancial Risk ManagementimfFinancial Institutions and Services: Government Policy and RegulationimfPortfolio ChoiceimfInvestment DecisionsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfInternational InvestmentimfLong-term Capital MovementsimfEconomic & financial crises & disastersimfFinanceimfBankingimfInternational economicsimfBlanket guaranteeimfLiquidityimfBank resolutionimfForeign liabilitiesimfCrisis managementimfEconomicsimfBanks and bankingimfInvestments, ForeignimfTurkeyimfBank failures.Financial crises.Moral hazard.Deposit insurance.Banks and BankingExports and ImportsFinance: GeneralFinancial Risk ManagementFinancial Institutions and Services: Government Policy and RegulationPortfolio ChoiceInvestment DecisionsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesInternational InvestmentLong-term Capital MovementsEconomic & financial crises & disastersFinanceBankingInternational economicsBlanket guaranteeLiquidityBank resolutionForeign liabilitiesCrisis managementEconomicsBanks and bankingInvestments, Foreign332.1Laeven Luc1463965Valencia Fabian1493480DcWaIMFBOOK9910788342903321The Use of Blanket Guarantees in Banking Crises3716480UNINA