Leading Indicators of Banking Crises: Was Asia Different?
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Summary:
This paper examines episodes of the banking system distress and crisis in a large sample of countries. The empirical results identify several macroeconomic and financial variables as useful leading indicators. The main macroeconomic indicators were of limited value in predicting the Asian crises; the best warning signs were proxies for the vulnerability of the banking and corporate sector. Full-blown banking crises are shown to be more associated with external developments, and domestic variables are the main leading indicators of severe but contained banking distress.
Series:
Working Paper No. 1998/091
Subject:
Banking crises Commercial banks Financial crises Financial institutions Financial services Foreign exchange Real effective exchange rates Real interest rates
English
Publication Date:
June 1, 1998
ISBN/ISSN:
9781451951745/1018-5941
Stock No:
WPIEA0911998
Pages:
32
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