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

46 Pages Posted: 23 Mar 2011 Last revised: 7 Jul 2014

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: January 25, 2014

Abstract

We investigate the macro financial determinants of the Great Financial Crisis of 2007-2009 using data on 83 countries from the period 1998-2006. Our results show 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 (January 25, 2014). Available at SSRN: https://ssrn.com/abstract=1788063 or http://dx.doi.org/10.2139/ssrn.1788063

Gerard Caprio

Williams College ( email )

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

Vincenzo D'Apice

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 (Contact Author)

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

Via Cintia 26
Napoli
Italy

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