Banking Crises in Emerging Markets: Presumptions and Evidence

Barry Eichengreen and Carlos Arteta

Department of Economics, Working Paper Series from Department of Economics, Institute for Business and Economic Research, UC Berkeley

Abstract: The existing empirical literature on banking crises has not produced agreement on their causes. Using a sample of 75 emerging markets in 1975-1997, we attempt to determine what we know about banking crises by establishing which previous results are robust. Among the robust causes of emerging-market banking crises are rapid domestic credit growth, large bank liabilities relative to reserves, and deposit-rate decontrol. On the other hand, there is no compelling evidence of any particular relationship between exchange rate regimes and crises. Finally, the evidence that deposit insurance or a weak institutional environment heighten crisis risk appears to be fragile.

Keywords: banking sector; banking crises; emerging markets (search for similar items in EconPapers)
Date: 2000-08-01
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Citations: View citations in EconPapers (80)

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Related works:
Working Paper: Banking Crises in Emerging Markets: Presumptions and Evidence (2001)
Working Paper: Banking Crises in Emerging Markets: Presumptions and Evidence (2000)
Working Paper: Banking Crises in Emerging Markets: Presumptions and Evidence (2000)
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