We investigate whether a bank’s performance during the 1998 crisis, which was viewed at the time as the most dramatic … crisis since the Great Depression, predicts its performance during the recent financial crisis. One hypothesis is that a bank … that has an especially poor experience in a crisis learns and adapts, so that it performs better in the next crisis …

The recent global financial crisis (GFC) of 2007-2008 revealed several critical shortcomings in the existing Basel II … Sovereign Debt Crisis in Europe. We find that the leverage ratio shows a statistically significant albeit positive association … with performance indicators (ROA and ROE) during the crisis period, indicative of the fact that higher values of …

during the credit crisis. The evidence is supportive of theories that emphasize the fragility of banks financed with short …-term capital market funding. The better-performing banks had less leverage and lower returns immediately before the crisis …. Differences in banking regulations across countries are generally uncorrelated with the performance of banks during the crisis …