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

Published online by Cambridge University Press:  26 March 2020

Asli Demirgüç-Kunt  and
Enrica Detragiache
Enrica Detragiache
Affiliation:
Development Research Group, The World Bank, and Research Department, International Monetary Fund
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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 crisesfinancial fragilityE44G21
Type
Articles
Information
National Institute Economic Review , Volume 192 , April 2005 , pp. 68 - 83
Copyright
Copyright © 2005 National Institute of Economic and Social Research

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Footnotes

This paper was prepared for this special edition of the National Institute Economic Review. We would like to thank Robert Cull for helpful suggestions and Baybars Karacaovali for excellent research assistance. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the IMF, the World Bank, their Executive Directors, or the countries they represent.

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