Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-25T17:57:00.206Z Has data issue: false hasContentIssue false

How Idiosyncratic are Banking Crises in OECD Countries?

Published online by Cambridge University Press:  26 March 2020

Ray Barrell*
Affiliation:
NIESR
E. Philip Davis*
Affiliation:
Brunel University and NIESR
Dilruba Karim*
Affiliation:
Brunel University and NIESR
Iana Liadze
Affiliation:
NIESR

Abstract

Low levels of bank capital and liquidity in combination with ongoing crises in other countries are shown to increase the probability of banking crises in OECD countries. Hence global coordination of regulatory reform is vital for reducing crisis risks.

Type
Research Articles
Copyright
Copyright © 2011 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors would like to thank the ESRC for funding for this work.

References

Barrell, R., Davis, E.P., Karim, D., and Liadze, I. (2010), ‘Bank regulation, property prices and early warning systems for banking crises in OECD countries’, Journal of Banking and Finance, 34, pp. 2255–64.CrossRefGoogle Scholar
Beck, T., Demirgüç-Kunt, A. and Levine, R. (2006), ‘Bank concentration, competition and crises, first results’, Journal of Banking and Finance, 30, pp. 1581–603.CrossRefGoogle Scholar
Borio, C. and Drehmann, M. (2009), ‘Assessing the risk of banking crises - revisited’, BIS Quarterly Review, March, pp 29-46.Google Scholar
Calomiris, C.W. and Mason, J.R. (2001), ‘Causes of U.S. bank distress during the depression’, Federal Reserve Bank of Chicago, Proceedings, May 2001, pp. 530–54.Google Scholar
Caprio, G. and Klingebiel, D. (2003), ‘Episodes of Systemic and Borderline Financial Crises’, World Bank Research Dataset.Google Scholar
Davis, E.P. and Karim, D. (2008), ‘Comparing early warning systems for banking crises’, Journal of Financial Stability, 4, 2, pp. 89120.CrossRefGoogle Scholar
Demirgüç-Kunt, A. and Detragiache, E. (2005), ‘Cross-country empirical studies of systemic bank distress: a survey’, National Institute Economic Review, 192, pp. 6883.CrossRefGoogle Scholar
Diamond, D. and Dybvig, P. (1983), ‘Bank runs, deposit insurance, and liquidity’, Journal of Political Economy, 91, pp. 401–19.CrossRefGoogle Scholar
Edwards, S. and Rigobon, R. (2002), ‘Currency crises and contagion: an introduction’, Journal of Development Economics, 69, pp. 307–13.CrossRefGoogle Scholar
Freixas, X., Parigi, B. and Rochet, J.-C. (2000), ‘Systemic risk, interbank relations and liquidity provision by the central bank’, Journal of Money, Credit and Banking, 32, pp. 611–38.CrossRefGoogle Scholar
Furfine, C.H. (2003), ‘Interbank exposures: quantifying the risk of contagion’, Journal of. Money, Credit and Banking, 35, pp. 111–28.CrossRefGoogle Scholar
Gersl, A. (2007), ‘Foreign banks, foreign lending and cross-border contagion: evidence from the BIS data’, Czech Journal of Economics and Finance, 57, pp. 2740.Google Scholar
Gorton, G. (1988), ‘Banking panics and business cycles’, Oxford Economic Papers, 40, pp. 751–81.CrossRefGoogle Scholar
Jayanti, S. and Whyte, A. (1996), ‘Global contagion effects of the Continental Illinois failure’, Journal of International Financial Markets, Institutions and Money, 6, pp. 8799.Google Scholar
Laeven, L. and Valencia, F. (2007), ‘Systemic banking crises: a new database’, IMF Working Paper 08/224.CrossRefGoogle Scholar
Pesaran, M.H. (2004a), ‘Estimation and inference in large heterogeneous panels with a multifactor error structure’, CESIFO Working paper 1331.Google Scholar
Pesaran, M.H. (2004b), ‘General diagnostic tests for cross section dependence in panels’, CESifo Working Papers 1229.Google Scholar
Reinhart, M.C. and Rogoff, S.K. (2008), ‘Is the 2007 US sub-prime financial crisis so different? An international historical comparison’, American Economic Review, 982, pp. 339–44.Google Scholar
Santor, E. (2003), ‘Banking crises and contagion: empirical evidence’, Bank of Canada Working Paper 03-1.Google Scholar