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

33 Pages Posted: 3 Mar 2006

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: May 2005

Abstract

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present-day economies. The paper reviews the two basic methodologies adopted in cross-country empirical studiesthe signals approach and the multivariate probability modeland their application to studying 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 (May 2005). IMF Working Paper, Vol. , pp. 1-33, 2005. Available at SSRN: https://ssrn.com/abstract=888142

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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