Inside the Crisis: An Empirical Analysis of Banking Systems in Distress

By Poonam Gupta, Asli Demirgüç-Kunt, Enrica Detragiache

August 1, 2000

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Poonam Gupta, Asli Demirgüç-Kunt, and Enrica Detragiache. Inside the Crisis: An Empirical Analysis of Banking Systems in Distress, (USA: International Monetary Fund, 2000) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Using aggregate and bank level data for several countries, the paper studies what happens to the banking system in the aftermath of a banking crisis. Contemporary crises are not accompanied by declines in aggregate bank deposits, and credit does not fall relative to output, although the growth of both deposits and credit slows down substantially. Output recovery begins in the second year after the crisis and is not led by a resumption in credit growth. Banks, including the stronger ones, reallocate their asset portfolio away from loans.

Subject: Bank credit, Bank deposits, Banking, Banking crises, Commercial banks, Credit, Financial crises, Financial institutions, Money

Keywords: Asset, Bank, Bank assets, Bank credit, Bank credit, Bank credit-to-GDP, Bank distress, Bank performance, Bank recapitalization plan, Bank runs, Banking crises, Commercial banks, Credit, Credit crunch, Crisis year, Deposit, Deposit growth, Deposit guarantee, Depositor, East Asia, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/156
Stock No:

WPIEA1562000
ISBN:

9781451857399
ISSN:

1018-5941

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