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

By Asli Demirgüç-Kunt, E. Detragiache. National Institute Economic Review, 2005

612 citations recorded by the source corpus.

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.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/cbc2a7102af407d534fd62d5d7ed27b84763ce08

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Citations in the corpus

Do Surges in International Capital Inflows Influence the Likelihood of Banking Crises?: Cross-Country Evidence on Bonanzas in Capital Inflows and Bonanza-Boom-Bust Cycles (2012, neutral): “…a boom is underway is given by the linear combination of the estimated coefficients for bonanzas and 19In order to work with the most parsimonious model I only include robust and relevant variables, as reported in surveys by Eichengreen and Arteta (2002) and Demirgüc-Kunt and Detragiache (2005).”
Assessing the Risk of Banking Crises – Revisited (2009, background): “For recent surveys, see Demirgüç-Kunt and Detragiache (2005) and Davis and Karim (2008a).”
Operationalising the Countercyclical Capital Buffer: Indicator Selection, Threshold Identification and Calibration Options (2014, background): “4 The literature on early warning models usually relies on a number of studies providing lists of crisis events, for example Demirgüç-Kunt and Detragiache (2005) and Caprio and Klingebiel (2003).”
Globalization and financial development (2009, background): “6 A survey of the literature that links a lack of sufficient prudential regulation and supporting institutions to excessive risk-taking and the possibility of a subsequent banking crisis is in Demirguc-Kunt and Detragiache (2005).”
Where does microfinance flourish? Microfinance institution performance in macroeconomic context (2011, neutral): “Our main indicators of financial revenue versus costs are the financial revenue per dollar loaned, or for brevity the average interest rate, and the financial expense per dollar loaned, or for brevity the average cost of funds.(13) Financial revenue per dollar loaned equals”
Bank regulation, property prices and early warning systems for banking crises in OECD countries (2010, methodology): “In order to align our study with previous work, we include the explanatory variables used by Demirguc-Kunt and Detragiache (2005) and Davis and Karim (2008a) (see Box 1).”