OECD Journal: Financial Market Trends

Frequency :
Semiannual
ISSN :
1995-2872 (online)
ISSN :
1995-2864 (print)
DOI :
10.1787/19952872
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The twice-yearly journal from OECD providing timely analyses and statistics on financial matters of topical interest and longer-term developments in specific financial sectors. Each issue provides a brief update of trends and prospects in the international and major domestic financial markets along with articles covering such topics as structural and regulatory developments in OECD financial systems, trends in foreign direct investment, trends in privatization, and financial sector statistics covering areas such as bank profitability, insurance, and institutional investors.

Periodically, a small number of articles within one field of financial sector developments – constituting the so-called special focus for the particular issue – may be included.

Now published as part of the OECD Journal package.

Article
 

Managing Crises without Government Guarantees

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Author(s):
Christine M. Cumming
Publication Date
23 Mar 2012
Pages
20
Bibliographic information
No.:
20,
Volume:
2011,
Issue:
2
Pages
9–19
DOI
10.1787/fmt-2011-5k9cswn0xzkg

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Experience illustrates that, for successful crisis management, there is no substitute for early intervention and, if possible, a private sector solution in preserving value in the firm and limiting externalities. Early intervention, in turn, calls for strong supervision. Even with a much stronger cross-border resolution process, some type of contingent arrangements in reserve will continue to be necessary. Despite their associated problems, guarantees and market backstops have been an important element in preserving liquidity and restoring market functionality and it would be difficult to manage financial crises without them. Other forms of intervention are likely to be more intrusive.