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Was the 2007 crisis really a global banking crisis?

  • Shehzad, Choudhry Tanveer
  • De Haan, Jakob

We argue that the 2007 crisis was not a global banking crisis. Stock prices of banks in emerging countries faced a temporary shock but quickly recovered, while stock prices of banks located in industrial countries remained much lower than before the 2007 crisis. Our results also suggest that stock prices of large banks were affected more during the crisis than those of small banks. We also find that managerial efficiency, loan quality, leverage, and the volume of outstanding loans affect bank stock prices.

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File URL: http://www.sciencedirect.com/science/article/pii/S1062940812000496
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Article provided by Elsevier in its journal The North American Journal of Economics and Finance.

Volume (Year): 24 (2013)
Issue (Month): C ()
Pages: 113-124

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Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:113-124
DOI: 10.1016/j.najef.2012.04.002
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620163

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  2. Didier, Tatiana & Hevia, Constantino & Schmukler, Sergio L., 2011. "How resilient and countercyclical were emerging economies to the global financial crisis ?," Policy Research Working Paper Series 5637, The World Bank.
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  9. James R Barth & Gerard Caprio & Ross Levine, 2008. "Bank Regulations are Changing: For Better or Worse?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(4), pages 537-563, December.
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  14. Barth, James R. & Caprio, Gerard, Jr. & Levine, Ross, 2008. "Bank regulations are changing : for better or worse ?," Policy Research Working Paper Series 4646, The World Bank.
  15. De Haan, Jakob & Poghosyan, Tigran, 2012. "Bank size, market concentration, and bank earnings volatility in the US," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(1), pages 35-54.
  16. Coleman, Andrew & Karagedikli, Özer, 2012. "The relative size of exchange rate and interest rate responses to news: An empirical investigation," The North American Journal of Economics and Finance, Elsevier, vol. 23(1), pages 1-19.
  17. Lili Xie, 2007. "Universal Banking, Conflicts of Interest and Firm Growth," Journal of Financial Services Research, Springer;Western Finance Association, vol. 32(3), pages 177-202, December.
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  20. Hawtrey, Kim & Liang, Hanyu, 2008. "Bank interest margins in OECD countries," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 249-260, December.
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