01720cas a2200253 a 4500 AALejournalIMF007805 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856729 1018-5941 BD-DhAAL BD-DhAAL Frydl, Edward. The Benefits and Costs of Intervening in Banking Crises / Edward Frydl, Marc Quintyn. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (78 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 provides a framework to assess the benefits and costs of intervening in a banking crisis. Intervention involves liquidity support and resolution actions. Principal benefits of intervention include avoiding panic and eliminating the economic costs of distorted incentives. Principal costs include fiscal costs and the economic costs of delay. The government's main decision concerns the length of the resolution horizon-whether to adopt a deliberate or an aggressive resolution strategy. Dominant factors affecting net benefits are the relative size of the banking system and the loss liquidation rate on assets financed by bank loans. Mode of access: Internet Quintyn, Marc. IMF Working Papers; Working Paper ; No. 2000/147 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/147/001.2000.issue-147-en.xml IMF e-Library