Bank Failures in the Major Trading Countries of the World: Causes and Remedies
Bank Failures in the Major Trading Countries of the World: Causes and Remedies
Synopsis
Excerpt
Well-known economist Anna J. Schwartz has said, ‘‘With respect to the terms that a reader encounters in the literature, financial fragility, financial crises, and financial instability are as common as systemic risk, but the terms have different meanings for different writers’’ (1995, 20). Exactly the same problem exists when we are trying to define bank failures, near failures, significant incidents, and other terms used in this book. Nevertheless, a discussion of these and other terms is necessary to provide a framework for this survey. the major concepts covered in this chapter are:
Contagion
Crisis
Failure and Near Failure
Insolvent
Panics
Resolution
Runs