Do Dynamic Provisions Enhance Bank Solvency and Reduce Credit Procyclicality? A Study of the Chilean Banking System

WPIEA2012124 Image
Price:  $18.00

Author/Editor: Jorge A. Chan-Lau
Release Date: © May, 2012
ISBN : 978-1-47550-353-1
Stock #: WPIEA2012124
English
Stock Status: On back-order

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Description

Dynamic provisions could help to enhance the solvency of individual banks and reduce procyclicality. Accomplishing these objectives depends on country-specific features of the banking system, business practices, and the calibration of the dynamic provisions scheme. In the case of Chile, a simulation analysis suggests Spanish dynamic provisions would improve banks' resilience to adverse shocks but would not reduce procyclicality. To address the latter, other countercyclical measures should be considered.

Taxonomy

Business cycles , Economic development




More publications in this series: Working Papers


More publications by: Jorge A. Chan-Lau