Contingent Liabilities from Banks How to Track Them?

In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It generates an index that we call the banking sector contingent liability index (BCLI), based on the...

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Bibliographic Details
Main Author: Arslanalp, Serkan
Other Authors: Liao, Yin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Economic & financial crises & disasters 
653 |a Depository Institutions 
653 |a Commercial banks 
653 |a Public Administration 
653 |a Banks 
653 |a Financial crises 
653 |a Public finance & taxation 
653 |a Corporate Finance and Governance: Government Policy and Regulation 
653 |a Banks and banking 
653 |a Financial institutions 
653 |a Contingent Pricing 
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653 |a Mortgages 
653 |a option pricing 
653 |a Global Financial Crisis, 2008-2009 
653 |a Futures Pricing 
653 |a Global financial crisis of 2008-2009 
653 |a Contingent liabilities 
653 |a Banks and Banking 
653 |a Public Sector Accounting and Audits 
653 |a Macroeconomics 
653 |a Banking crises 
653 |a Public financial management (PFM) 
653 |a Banking 
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520 |a In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It generates an index that we call the banking sector contingent liability index (BCLI), based on the banking sector’s size, concentration, diversification, leverage, and riskiness of assets. The index is illustrated for 32 advanced and emerging market economies from 2006 to 2013, as well as a group of banks including global systemically important banks (G-SIBs)