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Cross-country empirical studies of systemic bank distress : a survey

Listed author(s):
  • Demirguc-Kunt, Asli
  • Detragiache, Enrica

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The authors reviews the two basic methodologies adopted in cross-country empirical studies-the signals approach and the multivariateprobability 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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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3719.

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Date of creation: 01 Sep 2005
Handle: RePEc:wbk:wbrwps:3719
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