LEADER 05540oam 22012494 450 001 9910957403303321 005 20250426110929.0 010 $a9786612841996 010 $a9781462358816 010 $a1462358810 010 $a9781452749075 010 $a1452749078 010 $a9781451871067 010 $a1451871066 010 $a9781282841994 010 $a1282841998 035 $a(CKB)3170000000055144 035 $a(EBL)1608063 035 $a(SSID)ssj0000943980 035 $a(PQKBManifestationID)11612509 035 $a(PQKBTitleCode)TC0000943980 035 $a(PQKBWorkID)10982471 035 $a(PQKB)10948551 035 $a(OCoLC)874177680 035 $a(MiAaPQ)EBC1608063 035 $a(IMF)WPIEE2008248 035 $a(IMF)WPIEA2008248 035 $aWPIEA2008248 035 $a(EXLCZ)993170000000055144 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aBanks? Precautionary Capital and Persistent Credit Crunches /$fFabian Valencia 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (37 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/248 300 $aDescription based upon print version of record. 311 08$a9781451915594 311 08$a1451915594 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. Banks and the Real Economy; III. The Model; A. The Loan Contract; B. The Bank's Optimization Problem; C. Solution; D. Risk and the Target Level of Solvency; IV. Quantitative Experiments; V. Bank Recapitalization; VI. Conclusions; Figures; 1. Bank Credit as Percentage of GDP, Selected Countries; 2. Optimal Policy Functions; 3. Target Level of Solvency; 4. Responses to a Negative Transitory Productivity Shock; 5. Responses to an Interest Rate Increase; 6. Responses to a Large Negative Shock, With and Without Recapitalization 327 $a7. Credit Crunch Severity and Bank Recapitalization Tables; 1. Bank's Sequence of Events; 2. Public Recapitalization Costs for Selected Crises Episodes; 3. Sensitivity Analysis to a 2-? Productivity Shock; 4. Bank's Solvency Regions; Appendix; 8. Deposit Interest Rate; References 330 3 $aPeriods of banking distress are often followed by sizable and long-lasting contractions in bank credit. They may be explained by a declined demand by financially impaired borrowers (the conventional financial accelerator) or by lower supply by capital-constrained banks, a "credit crunch". This paper develops a bank model to study credit crunches and their real effects. In this model, banks maintain a precautionary level of capital that serves as a smoothing mechanism to avert disruptions in the supply of credit when hit by small shocks. However, for larger shocks, highly persistent credit crunches may arise even when the impulse is a one time, non-serially correlated event. From a policy perspective, the model justifies the use of public funds to recapitalize banks following a significant deterioration in their capital position. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/248 606 $aFinancial crises$zUnited States$xEconometric models 606 $aBank capital$zUnited States$xEconometric models 606 $aBank failures$zUnited States$xEconometric models 606 $aCredit$zUnited States$xEconometric models 606 $aRisk$zUnited States$xEconometric models 606 $aBank credit$2imf 606 $aBanking$2imf 606 $aBankruptcy$2imf 606 $aBanks and Banking$2imf 606 $aBanks and banking$2imf 606 $aBanks$2imf 606 $aCredit$2imf 606 $aDebt$2imf 606 $aDepository Institutions$2imf 606 $aFinance$2imf 606 $aFinance: General$2imf 606 $aIndustries: Financial Services$2imf 606 $aLiquidation$2imf 606 $aLoans$2imf 606 $aMicro Finance Institutions$2imf 606 $aMonetary economics$2imf 606 $aMonetary Policy, Central Banking, and the Supply of Money and Credit: General$2imf 606 $aMoney and Monetary Policy$2imf 606 $aMortgages$2imf 606 $aSolvency$2imf 607 $aUnited States$2imf 615 0$aFinancial crises$xEconometric models. 615 0$aBank capital$xEconometric models. 615 0$aBank failures$xEconometric models. 615 0$aCredit$xEconometric models. 615 0$aRisk$xEconometric models. 615 7$aBank credit 615 7$aBanking 615 7$aBankruptcy 615 7$aBanks and Banking 615 7$aBanks and banking 615 7$aBanks 615 7$aCredit 615 7$aDebt 615 7$aDepository Institutions 615 7$aFinance 615 7$aFinance: General 615 7$aIndustries: Financial Services 615 7$aLiquidation 615 7$aLoans 615 7$aMicro Finance Institutions 615 7$aMonetary economics 615 7$aMonetary Policy, Central Banking, and the Supply of Money and Credit: General 615 7$aMoney and Monetary Policy 615 7$aMortgages 615 7$aSolvency 676 $a330.973 700 $aValencia$b Fabian$01815695 801 0$bDcWaIMF 906 $aBOOK 912 $a9910957403303321 996 $aBanks? Precautionary Capital and Persistent Credit Crunches$94372400 997 $aUNINA