Taming financial development to reduce crises

Sami Ben Naceur, Bertrand Candelon and Quentin Lajaunie ()

Emerging Markets Review, 2019, vol. 40, issue C, -

Abstract: This paper assesses whether and how financial development triggers the occurrence of banking crises. It builds on a database that includes financial development as well as financial access, depth and efficiency for almost 100 countries. Through estimation of a dynamic logit panel model, it appears that financial development, from an institutional dimension and to a lesser extent from a market dimension, triggers financial stability within a 1- to 2-year horizon. Additionally, whereas financial access is destabilizing for advanced countries, it is stabilizing for emerging and low incomes ones. Both results have important implications for macroprudential policies and financial regulations.

Keywords: Financial development; Banking crises; Regulation (search for similar items in EconPapers)
JEL-codes: C33 G01 G18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014119300421
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Taming financial development to reduce crises (2019)
Working Paper: Taming Financial Development to Reduce Crises (2019)
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:ememar:v:40:y:2019:i:c:6

DOI: 10.1016/j.ememar.2019.05.003

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().