01782cas a2200241 a 4500 AALejournalIMF003614 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861556 1018-5941 BD-DhAAL BD-DhAAL Ribakova, Elina. Liberalization, Prudential Supervision, and Capital Requirements : The Policy Trade-Offs / Elina Ribakova. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (14 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 While deregulated financial markets and strong competition are commonly viewed as prerequisites for successful economic development, recent empirical evidence suggests that financial liberalization, if not well phased, can lead to costly financial crises. This paper focuses on the roles of minimum capital requirements and prudential supervision in promoting financial stability during financial liberalization. The paper extends the Hellmann, Murdock, and Stiglitz model to analyze the effects of prudential supervision and demonstrates the trade-off between the quality of supervision and the level of minimum capital requirements. Where prudential supervision is poor, higher capital requirements are optimal. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/136 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/136/001.2005.issue-136-en.xml IMF e-Library