Systemic Banking Crises Revisited
By Luc Laeven, Fabián Valencia. Social Science Research Network, 2018
510 citations recorded by the source corpus.
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.
View Paper: https://www.semanticscholar.org/paper/84a56bf87e0559440af4c2be02c9972bafb9b3f9
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
- Francesco Lamperti
- Valentina Bosetti
- Massimo Tavoni
- Andrea Roventini
- J. Beirne
- Nuobu Renzhi
- Tania Treibich
- Ulrich Volz
Citations in the corpus
- Economic uncertainty and bank risk: Evidence from emerging economies (2020, unknown): “…liberalization of financial sectors in recent decades, emerging countries are haunted by more frequent financial disorders with costly output and welfare loss (Laeven and Valencia, 2018), which makes the stability of financial sectors among the foremost priorities of their decision makers.”
- Three green financial policies to address climate risks (2021, background): “Relatedly, characteristics of banking crises mimic empirical findings about their distribution over time and about their fiscal costs (as reported in the database by Laeven and Valencia, 2012, 2018).”
- Feeling the Heat: Climate Risks and the Cost of Sovereign Borrowing (2021, background): “where yi,t represents the government bond yield; xi,t represents a set of domestic macroeconomic fundamentals; Zj denotes our climate vulnerability and resilience indicators; VIX stands for the Chicago Board Options Exchange (CBOE) Volatility Index, a measure of global risk aversion; USY are US long”