01798cas a2200253 a 4500 AALejournalIMF000645 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850512 1018-5941 BD-DhAAL BD-DhAAL Detragiache, Enrica. Financial Liberalization and Financial Fragility / Enrica Detragiache, Asli Demirguc-Kunt. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students A study of 53 countries during 1980-95 finds that financial liberalization increases the probability of a banking crisis, but less so where the institutional environment is strong. In particular, respect for the rule of law, a low level of corruption, and good contract enforcement are relevant institutional characteristics. The data also show that, after liberalization, financially repressed countries tend to have improved financial development even if they experience a banking crisis. This is not true for financially restrained countries. This paper's results support a cautious approach to financial liberalization where institutions are weak, even if macroeconomic stabilization has been achieved. Mode of access: Internet Demirguc-Kunt, Asli. IMF Working Papers; Working Paper ; No. 1998/083 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/083/001.1998.issue-083-en.xml IMF e-Library