02009cas a2200265 a 4500 AALejournalIMF001680 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844962 1018-5941 BD-DhAAL BD-DhAAL Isard, Peter. A Framework for the Analysis of Financial Reforms and the Cost of official Safety Nets / Peter Isard, Liliana Rojas-Suarez, Donald Mathieson. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (70 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 This paper builds a multiperiod, general equilibrium framework for analyzing the macroeconomic effects of financial reforms in developing countries and the costs of maintaining official safety nets under the financial system during such reforms. While a financial liberalization yields efficiency gains, adverse macroeconomic effects can arise if the creditworthiness of the nonfinancial sector is weak. In this situation, financial liberalization may also increase the authorities' expected deposit insurance funding obligations even with strong prudential supervision. Moreover, given the distortions in a repressed financial system, an increase in the required bank capital-asset ratio may increase the funding obligations associated with deposit insurance, particularly when the debt-servicing capacity of nonfinancial firms is low. Mode of access: Internet Mathieson, Donald. Rojas-Suarez, Liliana. IMF Working Papers; Working Paper ; No. 1992/031 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/031/001.1992.issue-031-en.xml IMF e-Library