摘要:The paper examines the generation of financial crises indeveloping economies and shows that the microeconomic structure of fhe financial sector is a crucial factor in creating the conditions for a crisis. Structural problems of the financial system in developing countries, including implicit insurance on bank liabilities, limitations of capital markets, and lack of appropiate regulatlons, are sources of financial fragility. The paper concludes that the intervention of a supervisory agency is needed to eliminate these distortions, and the optimal intervention consists of charging a fair insurance premium on bank liabilities or imposing on adjustable bankruptcy penalty on banking activity.