Systemic Banking Crises Database: An Update

Laeven, Luc; Valencia, Fabián

doi:10.2139/ssrn.2096234

Cited by 430 publications

(516 citation statements)

References 10 publications

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“…In the recent crisis the public debt increased by 19.9 % of GDP in the Euro area and by 23.6 % in the US. Both figures are similar to the increase in public debt in Norway, but much lower than the increase in debt in Sweden, Finland and Japan during the 1990s (Laeven and Valencia 2012).…”

Section: Reassessment Of Current Crisis Resolution Proceduressupporting

confidence: 53%

“…For Sweden, gross fiscal costs amounted between 3.6 and 4.0 % of GDP and output losses reached 32.9 % of GDP. Public debt increased by 36.2 % of GDP (all numbers are from Sandal 2004;Laeven and Valencia 2012;Honohan and Klingebiel 2003).…”

Section: Determinants Of Crisis Resolution Pathsmentioning

confidence: 99%

“…Laeven and Valencia (2012) determine gross fiscal costs of 3.9 % of GDP in the Euro area and 4.5 % of GDP in the United States. Taking the advanced economies into account, Laeven and Valencia (2010) calculate direct fiscal costs of 5.9 % for the years 2007-2009.…”

Section: Reassessment Of Current Crisis Resolution Proceduresmentioning

confidence: 99%

See 2 more Smart Citations

What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

Diemer

Vollmer

2015

Eurasian Econ Rev

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Banking crisis resolution is often a long-lasting process with large fiscal and social costs. We ask which difficulties authorities face when choosing and implementing resolution packages. We survey the literature analyzing the impact of single resolution instruments on moral hazard and fiscal costs. We argue that no best-practice resolution package exists and that the implementation of a package is subject to coordination failures. Since crisis resolution packages are countryspecific, we follow a case-study approach and describe how regulators in Japan and the Nordic countries during the 1990s solved their financial crises. We identify several obstacles the authorities in these countries were faced with and analyse their crisis resolution in the context of moral hazard and fiscal costs. Finally, we use these lessons to reassess the policy reactions in the US and in Europe during the recent financial crisis.Keywords Banking crisis Á Resolution instruments Á Lender of last resort Á Owner of last resort Á Political coase theorem

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Section: Reassessment Of Current Crisis Resolution Proceduressupporting

confidence: 53%

Section: Determinants Of Crisis Resolution Pathsmentioning

confidence: 99%

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What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

Diemer

Vollmer

2015

Eurasian Econ Rev

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“…The first, proposed by Frankel and Saravelos (2012) and Laeven and Valencia (2012), relies on nominal exchange rate depreciation. A crisis is detected when the depreciation exceeds 10% on a year to year basis.…”

Section: Robustness Check Using Alternative Currency Crisis Indicatorsmentioning

confidence: 99%

Currency crisis early warning systems: Why they should be dynamic

Candelon

Dumitrescu

Hurlin

2014

International Journal of Forecasting

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a b s t r a c tTraditionally, financial crisis Early Warning Systems (EWSs) have relied on macroeconomic leading indicators when forecasting the occurrence of such events. This paper extends such discrete-choice EWSs by taking the persistence of the crisis phenomenon into account. The dynamic logit EWS is estimated using an exact maximum likelihood estimation method in both a country-by-country and a panel framework. The forecasting abilities of this model are then scrutinized using an evaluation methodology which was designed recently, specifically for EWSs. When used for predicting currency crises for 16 countries, this new EWS turns out to exhibit significantly better predictive abilities than the existing static one, both in-and out-of-sample, thus supporting the use of dynamic specifications for EWSs for financial crises.

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“…In the 167 systemic bank crises before, counted by Laeven and Valencia (2008) between 1970, it was an equally extreme increase in market prices, just in other asset markets. A "bubble" is a suitable metaphor for such a price rise, which is not based on fundamental factors.…”

Section: Herd Behavior Versus Market Efficiencymentioning

confidence: 99%

Get Rid of Banks and Build Up a Modern Financial World

Lenz

2011

SSRN Journal

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Systemic Banking Crises Database: An Update

Cited by 430 publications

References 10 publications

What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

What makes banking crisis resolution difficult? Lessons from Japan and the Nordic Countries

Currency crisis early warning systems: Why they should be dynamic

Get Rid of Banks and Build Up a Modern Financial World

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