Toward An Effective Supervision of Partially Dollarized Banking Systems

The paper presents a supervisory framework that addresses the vulnerabilities of partially dollarized banking systems. The tendency to underprice systemic liquidity risk and currency-induced credit risk creates vulnerabilities that need supervisory responses. The framework seeks to induce agents to...

Full description

Bibliographic Details
Main Author: Garcia Pascual, Antonio
Other Authors: Cayazzo, Jorge, Gutierrez, Eva, Heysen, Socorro
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 01616nmm a2200265 u 4500
001 EB000928437
003 EBX01000000000000000722033
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 9781451862928 
100 1 |a Garcia Pascual, Antonio 
245 0 0 |a Toward An Effective Supervision of Partially Dollarized Banking Systems  |c Antonio Garcia Pascual, Jorge Cayazzo, Socorro Heysen, Eva Gutierrez 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2006 
300 |a 50 pages 
700 1 |a Cayazzo, Jorge 
700 1 |a Gutierrez, Eva 
700 1 |a Heysen, Socorro 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781451862928.001 
856 4 0 |u http://elibrary.imf.org/view/journals/001/2006/032/001.2006.issue-032-en.xml  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a The paper presents a supervisory framework that addresses the vulnerabilities of partially dollarized banking systems. The tendency to underprice systemic liquidity risk and currency-induced credit risk creates vulnerabilities that need supervisory responses. The framework seeks to induce agents to better internalize risks by implementing a risk based approach to supervision, following the risk management guidelines of the Basel Committee, and by establishing buffers to cover higher liquidity and solvency risks. The paper also shows that most dollarized countries have addressed their liquidity vulnerabilities, but few have addressed those arising from currency-induced credit risks