Cross-Country Empirical Studies of Systemic Bank Distress : A Survey

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 multivariate probability 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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Bibliographic Details
Main Authors: Detragiache, Enrica, Demirgüç-Kunt, Aslı
Language:English
Published: World Bank, Washington, DC 2005-09
Subjects:ADVERSE EFFECTS, ADVERSE SHOCKS, AGGREGATE DEMAND, ASSET PRICES, BALANCE SHEET, BANK CAPITAL, BANK ENTRY, BANK EXPOSURE, BANK FAILURE, BANK FAILURES, BANK INTEREST RATES, BANK LENDING, BANK MANAGERS, BANK PERFORMANCE, BANK PORTFOLIOS, BANK REGULATION, BANK REGULATIONS, BANK RUNS, BANK SAFETY, BANK SIZE, BANKING CRISES, BANKING CRISIS, BANKING DISTRESS, BANKING SECTOR, BANKING SECTOR FRAGILITY, BANKING SYSTEM, BANKING SYSTEMS, BANKRUPTCY, BORROWING, BORROWING DECISIONS, BUDGET SURPLUS, CAPITAL FLOWS, CAPITAL INFLOWS, CENTRAL BANK, CENTRAL BANK LENDING, CENTRAL BANKS, COMMERCIAL PAPER, CONSUMER CREDIT, CONTAGION, CONTRACT ENFORCEMENT, CORPORATE CONTROL, CREDIT BOOM, CREDIT BOOMS, CREDIT EXPANSION, CREDIT MARKETS, CRISIS EPISODES, CURRENCY BOARD, CURRENCY CRASHES, CURRENCY CRISES, DEBT, DEBT CRISES, DEPOSIT FREEZES, DEPOSIT GROWTH, DEPOSIT GUARANTEES, DEPOSIT INSURANCE, DEPOSIT INTEREST, DEPOSIT INTEREST RATES, DEPOSIT RATES, DEPOSITORS, DEVELOPING COUNTRIES, DOMESTIC BANKS, EARLY WARNING SYSTEM, EARLY WARNING SYSTEMS, ECONOMIC ACTIVITY, ECONOMIC CONDITIONS, ECONOMIC GROWTH, ECONOMICS, ECONOMIES IN TRANSITION, EMERGING COUNTRIES, EMERGING MARKETS, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EXCHANGE RATE, EXCHANGE RATE DEPRECIATION, EXCHANGE RATE POLICY, EXCHANGE RATE REGIME, EXCHANGE RATES, EXOGENOUS SHOCKS, EXTERNAL CREDIT, EXTERNAL SHOCKS, FINANCIAL CRISES, FINANCIAL DEVELOPMENT, FINANCIAL FRAGILITY, FINANCIAL INSTABILITY, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL REPRESSION, FINANCIAL SECTOR, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL VULNERABILITIES, FLEXIBLE EXCHANGE RATES, FOREIGN BANKS, FOREIGN BORROWING, FOREIGN CAPITAL, FOREIGN CURRENCY, FOREIGN ENTRY, FOREIGN EXCHANGE, FOREIGN OWNERSHIP, GAMBLING, GOVERNMENT INTERVENTION, GROWTH RATE, GROWTH RATES, HIGH INFLATION, HIGH INTEREST RATES, HIGH REAL INTEREST RATES, INDIVIDUAL BANK, INFLATION, INFORMATION DISCLOSURE, INSOLVENCY, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL ENVIRONMENT, INSURANCE DESIGN, INTEREST RATE RISK, INTEREST RATES, INTERNATIONAL CAPITAL, INTERNATIONAL MARKETS, LATIN AMERICAN, LENDER OF LAST RESORT, LOAN CRISIS, LOOTING, LOW INFLATION, MACROECONOMIC CONSEQUENCES, MACROECONOMIC EFFECTS, MACROECONOMIC ENVIRONMENT, MACROECONOMIC PERFORMANCE, MACROECONOMIC STABILITY, MACROECONOMIC VARIABLES, MARKET DISCIPLINE, MARKET VALUATION, MONETARY POLICY, MORAL HAZARD, NET WORTH, OPERATING EFFICIENCY, OUTPUT GROWTH, POLICY RESEARCH, PRIVATE AGENTS, PRIVATE CREDIT, PRIVATE SECTOR, PRIVATE SECTOR MONITORING, PROBLEM BANKS, PRODUCTIVITY, PRUDENTIAL REGULATION, PRUDENTIAL REGULATION AND SUPERVISION, PUBLIC FINANCES, QUANTITATIVE ASSESSMENT, REAL EXCHANGE, REAL EXCHANGE RATE, REAL INTEREST, REAL INTEREST RATE, REAL INTEREST RATES, REAL OUTPUT, RECESSION, REGULATORY FORBEARANCE, RISK DIVERSIFICATION, SAVINGS, STATE OWNERSHIP, STOCK MARKET, STOCK PRICES, SUPERVISORY REGIMES, SYSTEMIC BANKING CRISES, TRADING, TRANSPARENCY, VOLATILITY, VULNERABILITY,
Online Access:http://documents.worldbank.org/curated/en/2005/09/6292217/cross-country-empirical-studies-systemic-bank-distress-survey
https://hdl.handle.net/10986/8266
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