The Length and Cost of Banking Crises

Author/Editor:

Edward J Frydl

Publication Date:

March 1, 1999

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:

This paper reviews how recent studies of banking crises differ with regard to the dating, length, and costs of the crises. Significant discrepancies in these features suggest the absence of analytical consensus. The data allow an examination of the relation between perceived crisis length, as an index of delay in taking actions to resolve a crisis, and crisis costs. Cross-sectional evidence does not show that the length of a crisis is a significant contributor to its resolution cost. A measure of economic cost, the growth shortfall in the crisis period, shows more evidence of a link.

Series:

Working Paper No. 1999/030

Subject:

Bank resolution Banking Banking crises Commercial banks Crisis resolution Financial crises Financial institutions

English

Publication Date:

March 1, 1999

ISBN/ISSN:

9781451844894/1018-5941

Stock No:

WPIEA0301999

Pages:

32

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