Responding to Banking Crises: Lessons from Cross-Country Evidence

2010 ◽  
Author(s):  
Enrica Detragiache ◽  
Giang Ho
Keyword(s):  
Banking Crises ◽  
Cross Country

scholarly journals Financial Liberalization and Banking Crises: A Cross-Country Analysis*

2010 ◽  
Vol 10 (2) ◽  
pp. 263-292 ◽  
Author(s):  
APANARD P. ANGKINAND ◽  
WANVIMOL SAWANGNGOENYUANG ◽  
CLAS WIHLBORG
Keyword(s):  
Financial Liberalization ◽  
Banking Crises ◽  
Country Analysis ◽  
Cross Country

Global shocks, economic growth and financial crises: 120 years of New Zealand experience

2011 ◽  
Vol 18 (3) ◽  
pp. 331-355 ◽  
Author(s):  
Michael Bordo ◽  
David Hargreaves ◽  
Mizuho Kida
Keyword(s):  
New Zealand ◽  
Explanatory Power ◽  
Banking Crises ◽  
Global Business ◽  
Dummy Variables ◽  
Stable Period ◽  
The Us ◽  
Global Shocks ◽  
Cross Country ◽  
Currency Mismatches

We identify the timing of currency, banking crises and sudden stops in New Zealand from 1880 to 2008 using methodologies from the international literature and consider the extent to which the empirical models in that literature can explain New Zealand's crisis history. We find that the cross-country evidence on the determinants of crises fits New Zealand experience reasonably well. A number of the risk factors that correlate with crises internationally – such as domestic imbalances, external debt, and currency mismatches – were elevated for New Zealand when the country had more frequent crises and have improved in the recent (more stable) period. However, a time-series analysis of New Zealand growth over 120 years shows that global factors – such as the US growth rate and terms of trade – explain New Zealand growth fairly well, and that crisis-dummy variables do not have substantial additional explanatory power. This suggests that having sound institutions and policies may help avoid severe domestic crises, but will not be sufficient to avoid the domestic economic impact of the global business cycle.

Characteristics of Banking Crises

2016 ◽  
Vol 236 (3) ◽  
pp. 349-388
Author(s):  
Ralf Fendel ◽  
Hanno Stremmel
Keyword(s):  
Early Warning ◽  
Banking Sector ◽  
Warning System ◽  
Banking Crises ◽  
Structural Features ◽  
Annual Data ◽  
Contagion Effects ◽  
Country Comparison ◽  
Crisis Events ◽  
Cross Country

Abstract This paper compares determinants of banking sector crises using an early warning system approach in a diverse cross-country panel. We cover 152 countries using annual data from 1990 to 2011. We provide three main contributions: (i) accommodating different influences on banking sector fragility (banking sector, macroeconomic and structural features) in a wide country panel; (ii) introducing a variable accounting for geographical contagion effects; and (iii) cross country comparison based on two subsamples: advanced and developing countries. We find systematic differences between country groups and evidence for the influence of geographical contagion effects. The specification produces reliable early warning signals to detect crisis events on the banking sector level.

scholarly journals Cross-Country Empirical Studies of Systemic Bank Distress: A Survey

2005 ◽  
Vol 192 ◽  
pp. 68-83 ◽  
Author(s):  
Asli Demirgüç-Kunt ◽  
Enrica Detragiache
Keyword(s):  
Probability Model ◽  
Empirical Studies ◽  
Banking Crises ◽  
Economic Effects ◽  
Empirical Literature ◽  
Future Research ◽  
Multivariate Probability ◽  
Cross Country ◽  
Early Warnings

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The paper reviews the two basic methodologies adopted in cross-country empirical studies, the signals approach and the multivariate probability model, and their application to study the determinants of banking crises. The use of these models to provide early warnings for crises is also reviewed, as are studies of the economic effects of banking crises and of the policies to forestall them. The paper concludes by identifying directions for future research.

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