From good bankers to bad bankers: Ineffective supervision and management deterioration as major elements in banking crises

de Juan, Aristobulo
March 2003
Journal of International Banking Regulation;Mar2003, Vol. 4 Issue 3, p237
Academic Journal
This paper stresses the role, of bank management as a major element in all banking crises. Even when the crisis has its roots in macroeconomic conditions or in unexpected changes in government economic policy, and not initially in poor management, good bankers, when in trouble, often become bad bankers through a series of deteriorating attitudes. The paper analyses the causes and consequences of the mechanisms at work and presents the remedies which can be applied to stop and reverse the deterioration of financial institutions of systems in distress. The views presented in this paper, however, are entirely those of the author and do not necessarily reflect those of the World Bank.


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