Prudential Issues in Less Diversified Economies

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Price:  $15.00

Author/Editor: Pau Rabanal, Aditya Narain, Steen Byskov
Release Date: © October, 2003
ISBN : 978-1-45186-008-5
Stock #: WPIEA1982003
English
Stock Status: Available

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Description

This paper examines the prudential issues associated with credit concentration in less diversified economies (LDEs), which are identified as countries where one or two sectors represent a large share of exports. In preparing this analysis, the characteristics of their financial and banking systems and their interactions with the real sector are studied. The paper also examines the limitations on portfolio diversification confronting banks in these countries, both from the viewpoint of the real sector and of the financial system. The paper finds that banks in LDEs, particularly in low-income countries, appear to face higher risk than their peers in more diversified economies and makes suggestions for policy options and regulatory practices which could be encouraged in such systems.

Taxonomy

Financial crisis , International financial system




More publications in this series: Working Papers


More publications by: Pau Rabanal ; Aditya Narain ; Steen Byskov