To complement the early warning signals literature, we study the determinants of banking and currency crises for small …-is critical to reduce the likelihood of both banking and currency crises. The backing ratio is particularly important during years …

We examine the spillover effects between sovereigns and banks in a model with a heterogeneous banking system. An … increase in sovereign's default risk affects financial intermediaries through two channels in this model. First, banks' funding …, they amplify the effect of shocks on banks' balance sheets …

The analysis of interconnectedness and contagion is an important part of the financial stability and risk assessment of … analysis of interconnectedness and contagion for a country's financial system under various circumstances. We survey current …

franchise value, price-drop and recapitalization channels. The speed of entry of new banks after a collapse has a stabilizing …

Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data …

This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990 … banking sector conditions. Our findings suggest that reducing pre-crisis vulnerabilities and promptly addressing NPL problems …

provides guidance on how non-Basel Committee member countries could incorporate banks' capital and liquidity standards into … assistance on-and assessing compliance with-international standards in banking supervision …

This paper measures the performance of different metrics in assessing banking system vulnerabilities. It finds that … spotting banks that failed (bad apples). This paper proposes that these market-based ratios could be used as a surveillance … tool to assess vulnerabilities in the banking sector. While the measures may provide a somewhat fuzzy signal, it is better …

competitive conduct of financial institutions and banking system fragility. Using the Panzar and Rosse H-Statistic as a measure … for competition in 38 countries during 1980-2003, we present evidence that more competitive banking systems are less prone …