Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation

43 Pages Posted: 21 Oct 2010 Last revised: 22 Jun 2011

See all articles by Gerard Caprio

Gerard Caprio

Williams College

Vincenzo D'Apice

Italian Banking Association

Giovanni Ferri

LUMSA University

Giovanni Walter Puopolo

University of Naples Federico II - Department of Economic and Statistical Sciences

Multiple version iconThere are 2 versions of this paper

Date Written: October 21, 2010

Abstract

By analysing the macro financial determinants of the Great Financial Crisis of 2007-2009 on 83 countries, we find that the probability of suffering the crisis in 2008 was larger for countries having higher levels of credit deposit ratio whereas it was lower for countries having higher levels of: i) net interest margin, ii) concentration in the banking sector, iii) restrictions to bank activities, iv) private monitoring. Our findings contribute to the ongoing discussion that can help policymakers calibrate new regulation, by achieving a reasonable trade-off between financial stability and economic growth.

Keywords: Banking Crisis, Government Intervention, Regulation

JEL Classification: G15, G18, G21

Suggested Citation

Caprio, Gerard and D'Apice, Vincenzo and Ferri, Giovanni and Puopolo, Giovanni Walter, Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation (October 21, 2010). Available at SSRN: https://ssrn.com/abstract=1695335 or http://dx.doi.org/10.2139/ssrn.1695335

Gerard Caprio

Williams College ( email )

Williamstown, MA 01267
United States
413-597-2465 (Phone)
413-597-4045 (Fax)

Vincenzo D'Apice (Contact Author)

Italian Banking Association ( email )

Rome, 00186
Italy

Giovanni Ferri

LUMSA University ( email )

Via della Traspontina
Roma, Rome 00192
Italy

HOME PAGE: http://www.lumsa.it/giovanni-ferri

Giovanni Walter Puopolo

University of Naples Federico II - Department of Economic and Statistical Sciences ( email )

Via Cintia 26
Napoli
Italy

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