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Banking, financial integration, and international crises : an overview

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  • Leonardo Hernández
  • Klaus Schmidt-Hebbel

Abstract

This paper summarizes new research on the relationship among institutions, financial development, economic growth, financial integration, and the likelihood of boom-bust cycles and banking crises. The first part of the paper reviews issues pertaining mainly to the banking sector, and summarizes new findings regarding banking regulation and supervision and the behavior of depositors and other market participants. New findings on the internationalization of banking, boom-bust cycles and macro-financial linkages during financial integration, the elements of international financial crises, and the role of capital controls to reduce macroeconomic vulnerability are reviewed in the second part of the paper.

Suggested Citation

  • Leonardo Hernández & Klaus Schmidt-Hebbel, 2001. "Banking, financial integration, and international crises : an overview," Working Papers Central Bank of Chile 100, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:100
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    Cited by:

    1. Nicolas E. Magud & Carmen M. Reinhart & Kenneth S. Rogoff, 2018. "Capital Controls: Myth and Reality--A Portfolio Balance Approach," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 1-47, May.
    2. Obstfeld, Maurice, 2012. "Financial flows, financial crises, and global imbalances," Journal of International Money and Finance, Elsevier, vol. 31(3), pages 469-480.
    3. Jeffrey Frankel, 2013. "A Solution to Fiscal Procyclicality: The Structural Budget Institutions Pioneered by Chile," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Felipe Céspedes & Jordi Galí (ed.),Fiscal Policy and Macroeconomic Performance, edition 1, volume 17, chapter 9, pages 323-391, Central Bank of Chile.
    4. Mahir Binici & Mitali Das & Evgenia Pugacheva, 2024. "The Incidence of Capital Flow Management Measures: Observations from a New Database," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 72(1), pages 441-486, March.
    5. Bruce N. Lehmann & David M. Modest, 1985. "The Empirical Foundations of the Arbitrage Pricing Theory I: The Empirical Tests," NBER Working Papers 1725, National Bureau of Economic Research, Inc.
    6. Le Fort Varela, Guillermo & Lehmann, Sergio, 2003. "The unremunerated reserve requirement and net capital flows: Chile in the 1990s," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Pierre-Olivier Gourinchas & Maurice Obstfeld, 2012. "Stories of the Twentieth Century for the Twenty-First," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 226-265, January.
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    9. Lili Xie, 2007. "Universal Banking, Conflicts of Interest and Firm Growth," Journal of Financial Services Research, Springer;Western Finance Association, vol. 32(3), pages 177-202, December.
    10. Lili Xie, 2007. "Universal Banking, Conflicts of Interest and Firm Growth," Working Papers 200703, Ball State University, Department of Economics, revised Jul 2007.

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