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

  title={Cross-Country Empirical Studies of Systemic Bank Distress: A Survey},
  author={Asli Demirg{\"u}ç-Kunt and Enrica Detragiache},
  journal={National Institute Economic Review},
  pages={68 - 83}
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… 

The Determinants of Banking Crises: A Reassessment

We construct theory-based measures of systemic bank shocks, which differ from “banking crisis” indicators employed in many empirical studies and use these measures to reexamine the empirical evidence

In search of a measure of banking sector distress: empirical study of CESEE banking sectors

We tested the reliability of different versions of the Z-score and CAMELS-based financial strength indices (aggregated from bank-level data) in detecting periods of banking crisis on a sample of 20

The Development of Corporate Bond Markets: A Cross-Country Analysis

This study examines how macro-determinants influence corporate bonds by firms in 90 developed and developing countries over the period of 1970-2013. Employing Generalized Method of Moments (GMM)

What Drives Banking Sector Fragility in the Eurozone? Evidence from Stock Market Data

This article explores the determinants of banking sector fragility in the eurozone. For this purpose, a stock-market-based banking sector fragility indicator is calculated for eight member countries

IMF Lending and Banking Crises

This paper looks at the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1970–2010. The endogeneity of the

The Impact of Bank Concentration on Financial Distress: The Case of the European Banking System

This paper examines the impact of bank concentration on bank financial distress using a balanced panel of commercial banks belonging to EU 25 over the sample period running from 2003 to 2007.



The Determinants of Banking Crises: Evidence from Developing and Developed Countries

The paper studies the factors associated with the emergence of systemic banking crises in a large sample of developed and developing countries in 1980-94, using a multivariate logit econometric

The Determinants of Banking Crises in Developing and Developed Countries

The paper studies the factors associated with the emergence of systemic banking crises in a large sample of developed and developing countries in 1980-94 using a multivariate logit econometric model.

Determinants of Banking System Fragility: A Case Study of Mexico

This paper tests empirically the proposition that bank fragility is determined by bank-specific factors, macroeconomic conditions, and potential contagion effects. The methodology allows the

Determinants and Leading Indicators of Banking Crises: Further Evidence

This paper examines episodes of banking system distress and crisis in a large sample of countries to identify which macroeconomic and financial variables can be useful leading indicators. The best

Deposit-Institution Failures : A Review of Empirical Literature

Turbulence in the U.S. banking and financial system in the 1980s has led to a major government bailout and impending reform of the financial industry. Current literature on the failure of deposit

Determinants of Ex-Ante Banking System Distress: A Macro-Micro Empirical Exploration of Some Recent Episodes

This paper empirically analyzes the contribution of microeconomic and macroeconomic factors in five recent episodes of banking system problems in the U.S. Southwest (1986-92), Northeast (1991-92),

The Roots of Banking Crises: The Macroeconomic Context

This paper discusses the ways in which macroeconomic developments can put stress on banks, and in extreme cases lead to banking crises. These macroeconomic causes of bank vulnerability and crisis

The Nordic Banking Crises: Pitfalls in Financial Liberalization?

This study examines the banking crises in Finland, Norway and Sweden, which took place in the early 1990s, and draws some policy conclusions from their experiences. One key conclusion is that factors

Understanding Financial Crises: A Developing Country Perspective

This paper explains the puzzle of how a developing economy can shift from a path of reasonable growth before a financial crisis, as in Mexico in 1994, to a sharp decline in economic activity after a

Banking Crises in Emerging Markets: Presumptions and Evidence

The existing empirical literature on banking crises has not produced agreement on their causes. Using a sample of 75 emerging markets in 1975-1997, we attempt to determine what we know about banking