Banking Crises and Reversals in Financial Reforms

Petar Stankov

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: A number of countries have gone through banking crises since the early 1970s. This work links those episodes with the patterns of various financial reforms within those countries. As banking crises are endogenous, crisis exposures to major trading partners help identify the causality between crises and reforms. Consistent with the previous literature, the results of this work demonstrate that systemic banking crises reverse most financial reforms. However, they do so with various lags, whereas the impact of non-systemic crises is largely insignificant. The main results remain unaffected after numerous robustness checks. A rich set of policy implications is discussed which could help establish a growth-enhancing financial regulatory framework after banking crises.

Keywords: banking crises; financial reforms; crisis exposure (search for similar items in EconPapers)
JEL-codes: E58 G01 G18 G21 N20 (search for similar items in EconPapers)
Date: 2012-12
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Banking Crises and Reversals in Financial Reforms (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp474

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