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Inside the Crisis : An Empirical Analysis of Banking Systems in Distress

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dc.contributor.authorDetragiache, Enrica
dc.contributor.authorDemirguc-Kunt, Asli
dc.contributor.authorGupta, Poonam
dc.date.accessioned2014-08-28T17:13:14Z
dc.date.available2014-08-28T17:13:14Z
dc.date.issued2000-08
dc.description.abstractMuch of the substantial literature on banking crises, focuses on early warning indicators. The authors look at what happens to the economy, and the banking sector after a banking crisis breaks out. Much of the theory of banking crises assigns a central role to depositor runs, with vulnerability to runs viewed as a basic characteristic of banks as financial intermediaries. But banking systems can be financially distressed, even when depositors do not withdraw their deposits, if other bank creditors rush for the exit, or if banks become insolvent. Are contemporary banking crises characterized by large declines in deposits? The authors find that contemporary banking crises are not accompanied by declines in aggregate bank deposits, and credit does not fall relative to output, but the growth of both deposits, and credit does slow down substantially. Output recovery begins the second year after the crisis, and is not led by a resumption of credit growth. Instead, banks (including the stronger banks) reallocate their asset portfolio away from loans. This suggests that protecting deposits during a banking crisis, may not be enough to protect bank credit, as lack of usable collateral, and poor borrower creditworthiness, discourage banks from lending. However, protecting bank credit may not be a priority right after a crisis, as the real economy can rebound without it, at least while there is substantial under-used capacity.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/08/693219/inside-crisis-empirical-analysis-banking-systems-distress
dc.identifier.doi10.1596/1813-9450-2431
dc.identifier.urihttps://hdl.handle.net/10986/19812
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2431
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSET MANAGEMENT
dc.subjectASSET PRICES
dc.subjectBAILOUT COSTS
dc.subjectBANK ASSETS
dc.subjectBANK CAPITAL
dc.subjectBANK CREDIT
dc.subjectBANK DEPOSITS
dc.subjectBANK FAILURES
dc.subjectBANK LENDING
dc.subjectBANK LIQUIDITY
dc.subjectBANK LOANS
dc.subjectBANK RECAPITALIZATION
dc.subjectBANK RUNS
dc.subjectBANK SAFETY
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING DEPOSITS
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBANKING SYSTEMS
dc.subjectBANKS
dc.subjectBONDS
dc.subjectCAPITALIZATION
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANK LENDING
dc.subjectCENTRAL BANKS
dc.subjectCONTINGENT LIABILITIES
dc.subjectCOVERAGE
dc.subjectCURRENCY CRISES
dc.subjectCURRENCY DEPRECIATION
dc.subjectDEBT
dc.subjectDEFAULT RISK
dc.subjectDEFICITS
dc.subjectDEMAND DEPOSITS
dc.subjectDEPOSIT GUARANTEES
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDISTRESSED BANKS
dc.subjectEARNING ASSETS
dc.subjectEMERGING MARKETS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectFEDERAL RESERVE BANK OF ATLANTA
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CURRENCY DEPOSITS
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGROWTH RATE
dc.subjectINFLATION
dc.subjectINSOLVENCY
dc.subjectINTEREST MARGIN
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectLENDER OF LAST RESORT
dc.subjectLOAN LOSS PROVISIONS
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC SHOCKS
dc.subjectMARKET DISCIPLINE
dc.subjectMERGERS
dc.subjectMONETARY AUTHORITIES
dc.subjectMONETARY POLICIES
dc.subjectOPERATING COSTS
dc.subjectOVERHEAD COSTS
dc.subjectPOLITICAL ECONOMY
dc.subjectPROFITABILITY
dc.subjectRATE OF EXCHANGE
dc.subjectREAL INTEREST RATE
dc.subjectREAL SECTOR
dc.subjectRESERVES
dc.subjectRETURN ON ASSETS
dc.subjectRISK PREMIUMS
dc.subjectSAFETY NETS
dc.subjectSECURITIES
dc.subjectSMALL BANKS
dc.subjectSYSTEMIC BANKING CRISES
dc.subjectTIME DEPOSITS
dc.subjectTIME SERIES
dc.subjectTRANSITION ECONOMIES
dc.subjectVALUATION
dc.titleInside the Crisis : An Empirical Analysis of Banking Systems in Distressen
dspace.entity.typePublication
okr.crossref.titleInside the Crisis: An Empirical Analysis of Banking Systems in Distress
okr.date.disclosure2000-08-31
okr.date.doiregistration2025-04-10T10:52:20.781047Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/08/693219/inside-crisis-empirical-analysis-banking-systems-distress
okr.globalpracticeFinance and Markets
okr.guid794481468765869464
okr.identifier.doi10.1596/1813-9450-2431
okr.identifier.externaldocumentum000094946_00091305311183
okr.identifier.internaldocumentum693219
okr.identifier.reportWPS2431
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/10/13/000094946_00091305311183/Rendered/PDF/multi_page.pdfen
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicInsurance and Risk Mitigation
okr.topicPayment Systems and Infrastructure
okr.topicFinancial Crisis Management and Restructuring
okr.unitFinance, Development Research Group
okr.volume1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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