01962cas a2200301 a 4500 AALejournalIMF021745 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513582641 1018-5941 BD-DhAAL BD-DhAAL Vazquez, Francisco. Credit Reversals / Francisco Vazquez. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (34 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 studies episodes in which aggregate bank credit contracts alongside expanding economic activity-credit reversals. Using data for 179 countries during 1960-2017, the paper finds that reversals are a relatively common phenomenon--on average, they occur every five years. By comparison, banking crises take place every eight years on average. Credit reversals and banking crises also appear related to each other: reversals become more likely in the aftermath of banking crises, while the likelihood of crises drops following reversals. In terms of foregone economic activity, reversals are shown to be very costly, at about two-thirds of the costs of banking crises after taking into account their relative frequencies. Mode of access: Internet Financial Crises imf Foreign Exchange imf Informal Economy imf Monetary Policy, Central Banking, and The Supply Of Money imf Underground Econom imf IMF Working Papers; Working Paper ; No. 2021/103 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/103/001.2021.issue-103-en.xml IMF e-Library