VII Credibility and Prudential Supervision
Author:
Mr. Guillermo Calvo https://isni.org/isni/0000000404811396 International Monetary Fund

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,
Mr. Eduardo Borensztein
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Mr. Paul R Masson
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Mr. Manmohan S. Kumar
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Abstract

This section discusses issues related to promoting stability in the banking system and examines some of the pitfalls that are inherent in the reform process. The strength of the emerging market-oriented payments system of the PCPEs depends on the stability of the banking system. A stable banking system would enhance the financial intermediation process, which, in turn, could lead to an improvement in the savings performance as well as to a more efficient allocation of investment resources.