Cross-Country Empirical Studies of Systemic Bank Distress: A Survey
May 1, 2005
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Summary
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.
Subject: Banking, Banking crises, Commercial banks, Deposit insurance, Financial crises
Keywords: bank fragility, banking crisis, crisis duration, crisis episode, crisis probability, currency crisis, tequila crisis, WP
Pages:
32
Volume:
2005
DOI:
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Issue:
096
Series:
Working Paper No. 2005/096
Stock No:
WPIEA2005096
ISBN:
9781451861150
ISSN:
1018-5941
