– Bank vulnerabilities can foreshadow big costs for government budgets
– Pre-crisis bank characteristics, crisis management policies matter
– Better information, fiscal policy, tax policy can limit banking stress effects
MF staff has identified several features of countries’ banking systems that can amplify the effects of banking sector vulnerabilities on the government, and ultimately the fiscal costs of banking crises.

Source: IMF, 19/03/2015

2015-03-24T14:59:07+00:00

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