Cross-Border Exposures and Country Risk

Assessment and Monitoring

Thomas Krayenbuehl

• Publisher: Woodhead Publishing
• Year: 2001
• Print ISBN:
  9781855735125
• eBook ISBN:
  9781855738812
• Topic: Economics
• Subtopic: International Economics
• Index: Economics

The international financial system has come under strain several times in recent years, and analysis has shown that most crises originated from the risks built into cross-border exposures.Assessment and monitoring of cross-border exposures and country risk are essential activities for international lending agencies such as government bodies, banks, multinational corporations and other investors. Inadequate risk management could have a destabilising effect on both lender and borrower and could result in a major international financial crisis.This completely revised edition of Thomas E Krayenbuehl's classic handbook clearly shows how the various players can quantify and manage the complex factors involved in order to minimise the risk and avoid potentially catastrophic consequences. It provides both a rigorous analysis of the current situation and a guide to meeting the challenges of the future.Just some of the things you'll discover…How to succeed in cross-border lending and investment through good assessment, monitoring and hedging of country riskHow the Tequila and Asian crises came about, and the lessons learnedThe likelihood of future crises and the potential causesThe latest problems to beset the international financial systemThe recent developments in cross-border financingWhy the problem of contagion occurs between seemingly unrelated marketsThe enormous need for global capital to bring about sustainable economic development in the developing world, and the role of the major players in fulfilling itThe numerous factors that constitute and influence a specific country riskThe responsibilities of all the parties involved, from the IMF and the World Bank to the industrialised and developing nations, the regulators and the rating agenciesHow this study helps you: This lucid and authoritative handbook will help you to:Understand the problems facing the international financial systemIdentify and assess new investment opportunitiesOptimise risk composition of cross-border lending or investmentMake sound decisions, minimise risk and achieve better outcomes - The definitive study of this important topic – its purpose, practice and implications

Table of contents

• Front Cover
• Cross-Border Exposures and Country Risk: Assessment and Monitoring
• Copyright Page
• Table of Contents
• Dedication
• Preface
• Chapter 1. Overview
• Chapter 2. The need for capital
• Chapter 3. Risks in cross-border exposures and their assessment
• Chapter 4. Monitoring of cross-border exposures and hedging of country risk
• Chapter 5. Responsibilities
• Chapter 6. Conclusions
• Annex 1: Glossary
• Annex 2: Articles of Agreement of the International Monetary Fund
• Annex 3: Selected sovereign ratings for foreign currencies of developing countries
• Annex 4.1: Country risk rating by the International Country Risk Guide
• Annex 4.2: Country risk rating by the Institutional Investor (II)
• Annex 4.3: Country risk rating by Euromoney
• Annex 5: Alternative exchange rate regimes
• Index