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

40 Pages Posted: 14 Oct 2005

See all articles by Asli Demirgüç-Kunt

Asli Demirgüç-Kunt

World Bank - Development Research Group; World Bank

Enrica Detragiache

International Monetary Fund (IMF) - European Department

Multiple version iconThere are 2 versions of this paper

Date Written: September 2005

Abstract

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The paper 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.

Keywords: Banking crises, financial fragility

JEL Classification: E44, G21

Suggested Citation

Demirgüç-Kunt, Asli and Detragiache, Enrica, Cross-Country Empirical Studies of Systemic Bank Distress: A Survey (September 2005). World Bank Policy Research Working Paper No. 3719. Available at SSRN: https://ssrn.com/abstract=821416

Asli Demirgüç-Kunt (Contact Author)

World Bank - Development Research Group ( email )

United States
202-473-7479 (Phone)
202-522-1155 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/ademirguckunt/

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Enrica Detragiache

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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