scholarly journals The Role of Macroeconomic Shocks in Banking Crises

2002 ◽  
Author(s):  
Jarmo Pesola
Keyword(s):  
Banking Crises ◽  
Macroeconomic Shocks

scholarly journals Time-varying role of macroeconomic shocks on house prices in the US and UK: evidence from over 150 years of data

2018 ◽  
Vol 58 (5) ◽  
pp. 2249-2285 ◽  
Author(s):  
Vasilios Plakandaras ◽  
Rangan Gupta ◽  
Constantinos Katrakilidis ◽  
Mark E. Wohar
Keyword(s):  
House Prices ◽  
Time Varying ◽  
Macroeconomic Shocks ◽  
The Us

The persistent effect of banking crises on investment and the role of financial markets

2014 ◽  
Vol 6 (1) ◽  
pp. 64-77 ◽  
Author(s):  
Felix Rioja ◽  
Fernando Rios-Avila ◽  
Neven Valev
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Banking Crisis ◽  
Banking Crises ◽  
Output Growth ◽  
Long Term Effects ◽  
Content Type ◽  
Negative Effect

Purpose – While the literature studying the effect of banking crises on real output growth rates has found short-lived effects, recent work has focused on the level effects showing that banking crises can reduce output below its trend for several years. This paper aims to investigate the effect of banking crises on investment finding a prolonged negative effect. Design/methodology/approach – The authors test to see whether investment declines after a banking crisis and, if it does, for how long and by how much. The paper uses data for 148 countries from 1963 to 2007. Econometrically, the authors test how banking crises episodes affect investment in future years after controlling for other potential determinants. Findings – The authors find that the investment to GDP ratio is on average about 1.7 percent lower for about eight years following a banking crisis. These results are robust after controlling for credit availability, institutional characteristics, and a host of other factors. Furthermore, the authors find that the size and duration of this adverse effect on investment varies according to the level of financial development of a country. The largest and longer-lasting decrease in investment is found in countries in a middle region of financial development, where finance plays its most important role according to theory. Originality/value – The authors contribute by finding that banking crisis can have long-term effects on investment of up to nine years. Further, the authors contribute by finding that the level of development of the country's financial markets affects the duration of this decrease in investment.

scholarly journals DO RISK PREMIA PROTECT AGAINST BANKING CRISES?

2008 ◽  
Vol 12 (S1) ◽  
pp. 100-111 ◽  
Author(s):  
HANS GERSBACH ◽  
JAN WENZELBURGER
Keyword(s):  
Overlapping Generations ◽  
Banking System ◽  
Banking Crises ◽  
Risk Premia ◽  
Overlapping Generations Model ◽  
Macroeconomic Shocks ◽  
Macroeconomic Risks ◽  
Model Subject

This paper examines the question to what extent premia for macroeconomic risks in banking are sufficient to avoid banking crises. We investigate a competitive banking system embedded in an overlapping-generations model subject to repeated macroeconomic shocks. We show that even if banks fully incorporate macroeconomic risks into their pricing of loans, a banking system may enter bankruptcy with probability one. A major cause for this default is that risk premia of a competitive banking system may become too small if the capital base is low.

scholarly journals Time-Varying Role of Macroeconomic Shocks on House Prices in the US and UK: Evidence from over 150 Years of Data

2018 ◽  
Author(s):  
Vasilios Plakandaras ◽  
Rangan Gupta ◽  
Constantinos Katrakilidis ◽  
Mark E. Wohar
Keyword(s):  
House Prices ◽  
Time Varying ◽  
Macroeconomic Shocks ◽  
The Us

The Role of Household and Business Credit in Banking Crises

CFA Digest ◽  
2010 ◽  
Vol 40 (2) ◽  
pp. 23-25
Author(s):  
Johann U. de Villiers
Keyword(s):  
Banking Crises

scholarly journals Banking crises in developing countries–What crucial role of exchange rate stability and external liabilities?

2019 ◽  
Vol 31 ◽  
Author(s):  
Brahim Gaies ◽  
Stéphane Goutte ◽  
Khaled Guesmi
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Crucial Role ◽  
Banking Crises
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