Inside the Crisis: An Empirical Analysis of Banking Systems in Distress

Author/Editor:

Poonam Gupta ; Asli Demirgüç-Kunt ; Enrica Detragiache

Publication Date:

August 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Using aggregate and bank level data for several countries, the paper studies what happens to the banking system in the aftermath of a banking crisis. Contemporary crises are not accompanied by declines in aggregate bank deposits, and credit does not fall relative to output, although the growth of both deposits and credit slows down substantially. Output recovery begins in the second year after the crisis and is not led by a resumption in credit growth. Banks, including the stronger ones, reallocate their asset portfolio away from loans.

Series:

Working Paper No. 2000/156

Subject:

Bank credit Bank deposits Banking Banking crises Commercial banks Credit Financial crises Financial institutions Money

English

Publication Date:

August 1, 2000

ISBN/ISSN:

9781451857399/1018-5941

Stock No:

WPIEA1562000

Pages:

27

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