Bank soundness and macroeconomic policy / Carl-Johan Lindgren, Gillian Garcia and Matthew I. Saal.

Foreword, v -- Preface, vii -- Acknowledgement, xi -- Part I. Worldwide Experience with Bank Fragility -- 1. Introduction, 3 -- 2. Banking in the Economy—Why Banks Warrant Special Attention, 6 -- 3. Defining, Measuring, and Predicting Soundness, 9 -- Annex. Survey of Banking Problems Worldwide, 20 -- Part II. Macroeconomic Causes and Consequences of Unsound Banking Systems -- 4. Macroeconomic Causes of Bank Unsoundness, 39 -- 5. Macroeconomic Consequences of an Unsound Banking System, 57 -- Annex. Selected Case Studies —Quantitative Analysis, 82 -- Part III. Maintaining a Sound Banking System -- 6. Operating Environment, 93 -- 7. Internal Governance, 105 -- 8. External Governance: Market Discipline, 114 -- 9. External Governance: Regulation and Supervision, 123 -- 10. Challenges Confronting Regulation and Supervision, 136 -- 11. International Governance, 148 -- Part IV. Conclusions: Policy Design and Flexibility -- 12. Macroeconomic Policy Design, 161 -- 13. The Banking System and Macroeconomic Policy Flexibility, 159 -- Appendices: I. The Value of a Bank, 173 -- Annex: Business Accounting, 182 -- II. Supervisory Instruments, 185 -- References, 205.