This paper analyzes central bank policies on monitoring banks in distress when liquidity provisions are conditional on performance and a bad shock occurs. A sequential game model is used to analyze two policies: one in which the central bank acts with discretion and the second in which the...

This paper asks if bonanzas (i.e. surges) in net capital flows are associated with a higher likelihood of banking crises and whether this association is necessarily through a lending boom mechanism. Using a new database covering over one hundred countries during 1973-2008, the paper shows that...

Este trabajo presenta un conjunto de regularidades empíricas sobre los mecanismos a través de los que los problemas bancarios y el riesgo soberano se transmiten y retroalimentan, usando una amplia muestra de economías emergentes a lo largo de tres décadas. Para ello, se definen crisis...

Abstract This paper compares determinants of banking sector crises using an early warning system approach in a diverse cross-country panel. We cover 152 countries using annual data from 1990 to 2011. We provide three main contributions: (i) accommodating different influences on banking sector...

The aim of this paper is both to use Kindleberger’s thesis to analyse banking crashes of the Middle Age and to give proof of whether the medieval banks do or do not raise the same theoretical analysis as the modern banks. This is of importance, because the theories that are invoked by...

This paper explores the issue of constructing an economic predictive model of financial vulnerability through an alternative econometric methodology that addresses drawbacks in existing approaches. The methodology entails estimating a Markov regime switching model of exchange rate movements,...

Artículo de revista ; The events of 2023 have served as a reminder of how quickly banking crises can occur. This article analyses the roots of the problems which, ultimately, against a backdrop of uncertainty and rapid contagion effects, affected banks whose business models, governance and risk...

Purpose – This paper aims to explain the importance of the international cooperation and coordination among supervisory authorities of different countries in event of banking crises. It also suggests that the harmonious relationship has to be attained in the adoption of ex ante financial...

This paper focuses on bank rescue packages and on the behaviour of troubled banks in light of rescue offers. A puzzling feature of experience with banking crises is that in many cases policy authorities make offers of bank rescue, and banks are reluctant to accept these offers. We study...

The depression of the 1890s in Australia was associated with the collapse of the banking system, whereas problems in the financial system during the 1930s depression were far less severe. This is despite the fact that the initial macroeconomic shock during the 1930s depression was at least as...