Accounting for the Mexican banking crisis
نویسنده
چکیده
The Mexican banking crisis of 1994]1995 has widely been interpreted as the victim of the balance-of-payments crisis, rather than its cause. After all, Mexican banks had been enjoying high capitalization ratios, deemed to be more than sufficient to deal with the increased risk of non-performing loans. This paper, however, suggests that to a large extent Mexican accounting practices } rather than sound principles } were responsible for the apparent good health of the banking system. The role of banks in causing the Mexican crisis may therefore have been greater than previously thought. Q 2000 Elsevier Science B.V. All rights reserved. JEL classifications: F30; G21; O54; O16
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