M any Asian economies are now experiencing economic hardship , their troubles stemming in part from crises in their banking sectors. Given the important role the banking sector plays in these economies, resolution of their banking crises is a vital first step toward resuming economic growth. Unfortunately, the steps taken so far to resolve their banking problems appear inadequate. Many observer...

This paper studies the influence of bank market concentration, regulation, and institutions on the real effects of 68 systemic banking crises in 54 countries over the 1980-2000 period. We find that less stringent restrictions on non-traditional bank activities and on the mixing of banking and commerce have a negative effect on economic growth during normal periods but mitigate the negative effe...

in the past few decades, capitalist economic system has witnessed different financial crises the most important of which is the 2008 financial crisis. the crisis had different causes that the main causes are innovations and financial assets without actual backing (real underlying asset) and their developing by financial institutions. namely, financial institutions, especially banks, developed t...

The CLASS model is a top-down capital stress testing framework that uses public data, simple econometric models, and auxiliary assumptions to project the effect of macroeconomic scenarios on U.S. banking firms. Through the lens of the model, we find that the total banking system capital shortfall under stressful macroeconomic conditions began to rise four years before the financial crisis, peak...

Motivated by the 2008–09 financial crisis and the trade collapse, the paper analyzes the effect of past banking crises (1976–2002) on trade with a focus on African exporters. The paper shows that they are particularly vulnerable to a banking crisis in the countries they export to. It also distinguishes between an income effect (during a banking crisis, income and exports to the country fall) an...

The current EU financial system is characterised by relatively few large, interconnected and diversified banking groups. Whereas several large EU banking groups have weathered the crisis well, the EU financial system as a whole would have likely imploded due to a system-wide cascade of banking failures without the extraordinary and on-going taxpayer, government and central bank support (Europea...

The paradigm that financial markets are efficient has provided the intellectual backbone for the deregulation of the banking sector since the 1980s, allowing universal banks to be fully involved in financial markets, and investment banks to become involved in traditional banking. There is now overwhelming evidence that financial markets are not efficient. Bubbles and crashes are an endemic feat...