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

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  • Asli Demirgüç-Kunt
  • Enrica Detragiache

Abstract

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present-day 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 studying 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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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/96.

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Length: 32
Date of creation: 01 May 2005
Date of revision:
Handle: RePEc:imf:imfwpa:05/96

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Keywords: Bank resolution; Economic models; banking crises; banking; banking crisis; deposit insurance; bank fragility; banking system; banking sector; financial crises; financial liberalization; bank runs; bank regulation; bank failures; currency crises; bank failure; crisis probabilities; crisis episodes; bank distress; recapitalization; systemic banking crisis; contagion; financial crisis; prudential regulation; bankers; banking systems; early warning system; bank ownership; banking sector fragility; bank credit; bank for international settlements; systemic banking crises; foreign exchange; early warning systems; bank capital; banking crisis regressions; capital adequacy; prudential supervision; banking distress; bank entry; crisis countries; banking sector problems; bank stability; systemic crisis; insurance design; probability model; bank performance; pre-crisis; deposit insurance scheme; recession; macroeconomic stability; credit boom; bank crisis; bank recapitalization; speculative attacks; bank insolvencies; recessions; cross country experience; bank balance sheet; banking system failures; bank interest; crisis probability; bank policy; bank vulnerability; banking panics; loan crisis; credit booms; nationalization of banks; bank panic; crisis episode; banking regulation; prudential regulation and supervision; banking sector distress; bank soundness; market banking crises; banking markets; bank interest rates; bank competition; bank regulators; bank of england; bank restructuring; deposit guarantees; bank exposure; interbank market; bank portfolios; bank safety; regulatory forbearance; corporate sector; bank size; banking market; financial sector crisis; bank managers; bank lending; banking assets; systemic risk; information dissemination; banking system stability; crisis problem; crises resolution; bank of korea;

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