In this paper, we consider the long-term effects on economic output of fiscal deficits and banking crises. Using an unbalanced panel of thousands of annual observations from 169 countries around the world, we find very limited evidence that (average) banking crises have either statistically...

Extraordinary amounts of public funds and/or assistance were made available to banks since the onset of the 2007-2008 financial crisis. Governments worldwide have launched a massive bailout package to support banks in distress. Using a probit model, this paper investigates the likelihood of...

This paper analyzes the evolution of the banking system sensitivity to cross-border contagion in 2006-2011. The study is performed on the basis of the BIS data on cross-border exposures and the Bankscope data on Tier 1 capital of 20 banking systems (Australia, Austria, Belgium, Canada, Finland,...