Banking in Crisis

Nektarios Michail

Chapter Chapter 7 in Money, Credit, and Crises, 2021, pp 115-135 from Springer

Abstract: Abstract As you may have guessed or if you were living in almost any part of the world over the past twenty years, as experienced in everyday life, banks do not always do well. There have been many cases that banks have performed bad, and were either forced to shut down, merge with another institution, or even rescued using government money. Thus, in this chapter, we will delve more into the reasons banks fail as well as into the effects this can have on the economy. In particular, the chapter distinguishes “usual” recessions from banking crises, with liquidity being heavily affected as a result of banks being hurt financially, through write-offs (i.e. losses) and loan loss provisions as the number of non-performing loans increases. Through examples illustrated with the help of bank balance sheet graphics, these effects are overviewed and elaborated upon. The usual responses of central banks in downturns are also examined.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-030-64384-3_7

Ordering information: This item can be ordered from
http://www.springer.com/9783030643843

DOI: 10.1007/978-3-030-64384-3_7

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().