Detragiache, EnricaDemirgüç-Kunt, Aslı2012-06-182012-06-182005-09https://hdl.handle.net/10986/8266A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The authors 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 to forestall them. The paper concludes by identifying directions for future research.CC BY 3.0 IGOADVERSE EFFECTSADVERSE SHOCKSAGGREGATE DEMANDASSET PRICESBALANCE SHEETBANK CAPITALBANK ENTRYBANK EXPOSUREBANK FAILUREBANK FAILURESBANK INTEREST RATESBANK LENDINGBANK MANAGERSBANK PERFORMANCEBANK PORTFOLIOSBANK REGULATIONBANK REGULATIONSBANK RUNSBANK SAFETYBANK SIZEBANKING CRISESBANKING CRISISBANKING DISTRESSBANKING SECTORBANKING SECTOR FRAGILITYBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBORROWINGBORROWING DECISIONSBUDGET SURPLUSCAPITAL FLOWSCAPITAL INFLOWSCENTRAL BANKCENTRAL BANK LENDINGCENTRAL BANKSCOMMERCIAL PAPERCONSUMER CREDITCONTAGIONCONTRACT ENFORCEMENTCORPORATE CONTROLCREDIT BOOMCREDIT BOOMSCREDIT EXPANSIONCREDIT MARKETSCRISIS EPISODESCURRENCY BOARDCURRENCY CRASHESCURRENCY CRISESDEBTDEBT CRISESDEPOSIT FREEZESDEPOSIT GROWTHDEPOSIT GUARANTEESDEPOSIT INSURANCEDEPOSIT INTERESTDEPOSIT INTEREST RATESDEPOSIT RATESDEPOSITORSDEVELOPING COUNTRIESDOMESTIC BANKSEARLY WARNING SYSTEMEARLY WARNING SYSTEMSECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC GROWTHECONOMICSECONOMIES IN TRANSITIONEMERGING COUNTRIESEMERGING MARKETSEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL STUDIESEXCHANGE RATEEXCHANGE RATE DEPRECIATIONEXCHANGE RATE POLICYEXCHANGE RATE REGIMEEXCHANGE RATESEXOGENOUS SHOCKSEXTERNAL CREDITEXTERNAL SHOCKSFINANCIAL CRISESFINANCIAL DEVELOPMENTFINANCIAL FRAGILITYFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL REPRESSIONFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL VULNERABILITIESFLEXIBLE EXCHANGE RATESFOREIGN BANKSFOREIGN BORROWINGFOREIGN CAPITALFOREIGN CURRENCYFOREIGN ENTRYFOREIGN EXCHANGEFOREIGN OWNERSHIPGAMBLINGGOVERNMENT INTERVENTIONGROWTH RATEGROWTH RATESHIGH INFLATIONHIGH INTEREST RATESHIGH REAL INTEREST RATESINDIVIDUAL BANKINFLATIONINFORMATION DISCLOSUREINSOLVENCYINSTITUTIONAL DEVELOPMENTINSTITUTIONAL ENVIRONMENTINSURANCE DESIGNINTEREST RATE RISKINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL MARKETSLATIN AMERICANLENDER OF LAST RESORTLOAN CRISISLOOTINGLOW INFLATIONMACROECONOMIC CONSEQUENCESMACROECONOMIC EFFECTSMACROECONOMIC ENVIRONMENTMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMACROECONOMIC VARIABLESMARKET DISCIPLINEMARKET VALUATIONMONETARY POLICYMORAL HAZARDNET WORTHOPERATING EFFICIENCYOUTPUT GROWTHPOLICY RESEARCHPRIVATE AGENTSPRIVATE CREDITPRIVATE SECTORPRIVATE SECTOR MONITORINGPROBLEM BANKSPRODUCTIVITYPRUDENTIAL REGULATIONPRUDENTIAL REGULATION AND SUPERVISIONPUBLIC FINANCESQUANTITATIVE ASSESSMENTREAL EXCHANGEREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREAL OUTPUTRECESSIONREGULATORY FORBEARANCERISK DIVERSIFICATIONSAVINGSSTATE OWNERSHIPSTOCK MARKETSTOCK PRICESSUPERVISORY REGIMESSYSTEMIC BANKING CRISESTRADINGTRANSPARENCYVOLATILITYVULNERABILITYWorld Bank10.1596/1813-9450-3719