In this paper we develop a new Early Warning System (EWS) of Banking Crises based on a new estimated indicator of the gap between the observed private credit ratio and its long-term structural level.

In this paper we introduce several methodological innovations in an empirical analysis of the determinants of the private Credit-to-GDP ratio, which allow us to estimate the long-term sustainable level of credit deepening in a country and its deviations. We also find new evidence of different...

This paper shows stylized facts on the rather large retrenchment of cross-border lending by Euro-area banks into emerging markets. The clearest case is Asia where Euro-area banks have massively lost market share. The reason, however, is not only related to their retrenching but also to the surge...

In this paper we assess empirically whether financial inclusion contributes to reducing income inequality when controlling for other key factors, such as economic development and fiscal policy. We conclude that financial inclusion contributes to reducing income inequality to a significant...

New ways of understanding banking, technological improvements, and regulation yield new means of interaction between customers and banks through outsourcing agreements. This paper provides the first harmonised database with information on the number of banking correspondents by country, which...

This article analyzes the potential impact of a higher level of capital and liquidity of banks on the credit penetration and the economic development in emerging countries. To do so, it employs an econometric exercise in two stages. In the first stage it is estimated the impact of capital and...

Este articulo analiza el impacto potencial de un mayor nivel de capital y liquidez bancaria sobre la penetracion del credito y el desarrollo economico en los paises emergentes. Con este fin, se realiza un ejercicio econometrico en dos etapas. En la primera etapa se estima el impacto del capital...

We find empirical evidence that the Chinese banking system has benefited from the entry of foreign investors through higher profitability and increased efficiency of the banking system. Foreign partcipation, which consists of a minority stake in a Chinese bank (in contrast to the typical pattern...

In this document, the main characteristics of the mortgage markets regulation in developed countries will be analyzed, trying to extract implications in terms of the resilience of the different systems during this crisis. The note is organized in four sections, covering the most relevant issues...

Banking union is the most ambitious European project undertaken since the introduction of the single currency. It was launched in the summer of 2012, in order to send the markets a strong signal of unity against a looming financial fragmentation problem that was putting the euro on the ropes....