Front Matter Page
Monetary and Financial Systems Department
Authorized for distribution by David D. Marston
Contents
I. Introduction
II. Supervisory Practices
III. Towards Good practices
A. Foreign Exchange Risks
B. Credit Risks
C. Liquidity Risks
D. Implementation Issues
Boxes
1. How Does a Devaluation Affect the Capital Adequacy Ratio (CAR) of a Bank, Depending on its Foreign Exchange Position and Asset Dollarization?
2. Quantitative Assessment of Currency-Induced Credit Risk and its Application for Off-Site Supervision: The Case of Peru
3. Costs and Benefits of Prudential Requirements to Control Liquidity Risk: The Case of Peru
Appendices
I. Country Practices: Survey Results
II. Currency-Induced Credit Risk in Selected Banking Systems