Effects of a banking crisis on credit growth in developing countries

Raksmey Uch, Hiroaki Miyamoto and Makoto Kakinaka

Finance Research Letters, 2021, vol. 43, issue C

Abstract: This study examines how a banking crisis affects credit growth in developing countries by considering two states of financial conditions: financial cycles and financial development. We estimate dynamic responses of credit growth to a banking crisis by using the local projection method. Our empirical results reveal that a banking crisis has an adverse impact on the credit cycle, and this negative effect is more substantial during a financial boom. We also find that the negative crisis effect is further magnified in countries with a high level of financial development.

Keywords: banking crisis; credit growth; financial cycles; financial development (search for similar items in EconPapers)
JEL-codes: E51 G01 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612321000854
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000854

DOI: 10.1016/j.frl.2021.102004

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().