Systemic Banking Crises Revisited

49 Pages Posted: 16 Oct 2018

See all articles by Luc Laeven

Luc Laeven

European Central Bank (ECB); Centre for Economic Policy Research (CEPR)

Fabián Valencia

International Monetary Fund (IMF)

Date Written: September 2018

Abstract

This paper updates the database on systemic banking crises presented in Laeven and Valencia (2008, 2013). Drawing on 151 systemic banking crises episodes around the globe during 1970-2017, the database includes information on crisis dates, policy responses to resolve banking crises, and the fiscal and output costs of crises. We provide new evidence that crises in high-income countries tend to last longer and be associated with higher output losses, lower fiscal costs, and more extensive use of bank guarantees and expansionary macro policies than crises in low- and middle-income countries. We complement the banking crises dates with sovereign debt and currency crises dates to find that sovereign debt and currency crises tend to coincide or follow banking crises.

Keywords: Banking crisis, Bank restructuring, Crisis resolution, Financial crisis, banking crisis; financial crisis; bank restructuring; crisis resolution, banking crisis, financial crisis, bank restructuring, crisis resolution, General

JEL Classification: E50, E60, G20

Suggested Citation

Laeven, Luc A. and Valencia, Fabian V., Systemic Banking Crises Revisited (September 2018). IMF Working Paper No. 18/206. Available at SSRN: https://ssrn.com/abstract=3267233

Luc A. Laeven (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Fabian V. Valencia

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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