Chapter 22 Banking Fragility, Effectiveness, and Regulation in Less-Developed Countries
- International Monetary Fund
- Published Date:
- January 2001
Banks in less-developed countries can offer borrowers a stable source of loans, deposits secure from loss, and competitive provision of financial services. These objectives can be achieved by a regulatory system based on adequate required capital and structured early intervention and resolution that permits unrestrained entry and costless (to taxpayers) exit of domestic and foreign banks.