Bank Insolvency and Stabilization in Eastern Europe

46 Pages Posted: 15 Feb 2006

See all articles by Daniel Hardy

Daniel Hardy

International Monetary Fund (IMF)

Ashok Kumar Lahiri

affiliation not provided to SSRN

Date Written: January 1992

Abstract

The profound structural reform underway in Eastern Europe has revealed the weakness of the banking sector there; macroeconomic stability and other reforms are thereby threatened. After an overview of recent developments in the banking sectors of these countries, a model is developed that clarifies the role of banking in an emerging market economy, and the danger that the disturbances inherent to it may be magnified and prolonged by a banking collapse. The implication is that priority must be given to mobilizing fiscal resources to cover the costs of restructuring the banking sector.

JEL Classification: E44, G21, P21, P27, P34

Suggested Citation

Hardy, Daniel and Lahiri, Ashok Kumar, Bank Insolvency and Stabilization in Eastern Europe (January 1992). Available at SSRN: https://ssrn.com/abstract=884564 or http://dx.doi.org/10.2139/ssrn.884564

Daniel Hardy (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Ashok Kumar Lahiri

affiliation not provided to SSRN

No Address Available

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