TY - BOOK ID - 146593937 TI - Determinants of Zombie Banks in Emerging Markets and Developing Economies AU - Wezel, Torsten. AU - Fu, Zhengwei. AU - Sheldon, Hannah. PY - 2024 SN - 9798400268632 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Bank resolution KW - Banking crises KW - Banks and Banking KW - Banks KW - Credit KW - Crisis management KW - Currency crises KW - Debt Management KW - Debt KW - Debts, Public KW - Depository Institutions KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Economics KW - Economics: General KW - Finance KW - Finance: General KW - Financial Crises KW - Financial crises KW - Financial Institutions and Services: Government Policy and Regulation KW - Financial Risk Management KW - Financial services industry KW - General Financial Markets: General (includes Measurement and Data) KW - Informal sector KW - Macroeconomics KW - Micro Finance Institutions KW - Monetary economics KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Money and Monetary Policy KW - Money KW - Mortgages KW - Public debt KW - Public finance & taxation KW - Public Finance KW - Sovereign Debt UR - https://www.unicat.be/uniCat?func=search&query=sysid:146593937 AB - While deeply undercapitalized banks have been shown to misallocate credit to weak firms, the drivers of such zombie banks are less researched, particularly across countries. To furnish empirical evidence, we compile a dataset of undercapitalized banks from emerging markets and developing economies. We classify zombie banks as those not receiving remedial treatment by owners or regulators or, alternatively, remaining chronically undercapitalized. Using logit regressions, we find that country-specific factors are more influential for zombie status than bank characteristics, alhough some become significant when disaggregating by region. The paper’s overall findings imply the need for a proper regulatory framework and an effective resolution regime to deal with zombie banks more decisively. ER -