Chapter

Financial Restructuring in Banking and Corporate-Sector Crises

Edited by Stijn Claessens, Daniela Klingebiel and Luc Laeven

in Managing Currency Crises in Emerging Markets

Published by University of Chicago Press

Published in print February 2003 | ISBN: 9780226155401
Published online February 2013 | e-ISBN: 9780226155425 | DOI: http://dx.doi.org/10.7208/chicago/9780226155425.003.0008
Financial Restructuring in Banking and Corporate-Sector Crises

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This chapter reviews knowledge about the trade-offs involved in policies related to financial restructuring in banking and corporate sector crises. It examines a micro dataset for 700 companies in nine crisis countries to determine policies that are important in minimizing the cost of the crises. The analysis reveals that liquidity support early in the crisis and the use of a government-run asset management corporation can mitigate the severity of a financial crisis while government guarantees of the banking system's financial liabilities do not appear to be helpful.

Keywords: financial restructuring; banking sector; corporate sector; liquidity support; asset management corporation; financial crisis; government guarantees

Chapter.  15886 words.  Illustrated.

Subjects: International Economics

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