... functioning of the payments system and, by undermining Development Finance, MPP, VJU Prof K Fujimoto confidence in domestic financial institutions, they may cause a decline in domestic savings and/or... available to finance investment Thus, their models (of, say, interest rate ceilings) provide an intellectual justification for financial repression Governments often impose a ceiling on the interest... Microeconomic/Bad Banking Factors A banking crisis often has its roots in poor bank operations including one of even possibly more of the following: poor lending practices, excessive risk taking, poor governance,