An Incentive Approach to Identifying Financial System Vulnerabilities

20 Pages Posted: 14 Feb 2006

Multiple version iconThere are 2 versions of this paper

Date Written: December 2000


This paper underscores the importance of the assessment of incentives of the main agents in a financial system as a key element in the analysis of financial system vulnerability and the surveillance over the financial system. We outline a diagnostic approach for the assessment of incentives. This approach highlights the need for additional research on the relationship between institutional structures and financial vulnerabilities.

Keywords: asymmetric information, market structure, incentive assessments

JEL Classification: B4, G15, G38

Suggested Citation

Chai, Jingqing and Johnston, R. Barry, An Incentive Approach to Identifying Financial System Vulnerabilities (December 2000). IMF Working Paper, Vol. , pp. 1-20, 2000. Available at SSRN:

Jingqing Chai (Contact Author)

UNICEF ( email )

P. O. Box 4884
New York, NY
United States

R. Barry Johnston

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics