Caprio, Gerard Jr. and D'Apice, Vincenzo and Ferri, Giovanni and Puopolo, Giovanni Walter (2010): Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation. Published in: Temi di Economia e Finanza , Vol. 1, No. Special Issue (21. October 2010): pp. 1-31.
Download (475kB) | Preview
By analysing the macro financial determinants of the Great Financial Crisis of 2007-2009 on 83 countries, we find that the probability of suffering the crisis in 2008 was larger for countries having higher levels of credit deposit ratio whereas it was lower for countries having higher levels of: i) net interest margin, ii) concentration in the banking sector, iii) restrictions to bank activities, iv) private monitoring. Our findings contribute to the ongoing discussion that can help policymakers calibrate new regulation, by achieving a reasonable trade-off between financial stability and economic growth.
|Item Type:||MPRA Paper|
|Original Title:||Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation|
|English Title:||Macro Financial Determinants of the Great Financial Crisis:Implications for Financial Regulation|
|Keywords:||Banking Crisis; Government Intervention, Regulation|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G0 - General > G01 - Financial Crises
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Vincenzo D'Apice|
|Date Deposited:||23. Oct 2010 14:05|
|Last Modified:||30. Dec 2015 09:53|
Acemoglu, D., Johnson, S., (2005), “Unbundling Institutions”, Journal of Political Economy, vol. 113(5), pages 949-995, October.
Alesina A., Devleeschauwer A., Easterly W., Kurlat S., Wacziarg R., (2003), “Fractionalization”, Journal of Economic Growth, 8, 155-194.
Allen F., Gale D., (2000a), “Comparing Financial System”, MIT Press, Cambridge, MA.
Allen F., Gale D., (2000b), “Financial Contagion”, Journal of Political Economy.
Allen F., Gale D., (2004), “Asset Price Bubbles and Monetary Policy, in Meghnad Desai and Yahia Said (eds.), Global Governance and Financial Crisis, Routledge, London, 19-42.
Barth J., Caprio G. Jr., Levine R., (2004), “Bank Regulation and Supervision: What Works Best?”, Journal of Financial Intermediation 13, 205–248.
___________________________, (2006). “Rethinking Bank Regulation: Till Angels Govern”, Cambridge University Press
___________________________, 2011, “The Guardians of Finance: Getting Them to Work for Us”, MIT Press forthcoming.
Basel Committee on Banking Supervision, (2009), "Strengthening the Resilience of the Banking Sector", Consultative Document.
___________________________________, (2010), “An Assessment of the Long-Term Economic Impact of the New Regulatory Framework”.
Beck T., Demirgüç-Kunt A., Levine R., (2000), "A New Database on Financial Development and Structure", World Bank Economic Review 14, 597-605.
Beck T., Demirgüç-Kunt A., Levine R., (2006), “Bank Concentration, Competition and Crises: First Results”, Journal of Banking and Finance 30, 1581-1603.
Beltratti A., Stulz R.M., (2009), “Why Did Some Banks Perform Better During the Credit Crisis? A Cross-Country Study of the Impact of Governance and Regulation”, NBER WP 15180.
Boyd J., De Nicolo G., Jalal A., (2005), “The Theory of Bank Risk Taking and Competition Revisited”, IMF WP.
Caprio G. Jr., (2010), "Financial Regulation in a Changing World: Lessons from the Recent Crisis", Paper prepared for the VII Colloquium on “Financial Collapse: How are the Biggest Nations and Organizations Managing the Crisis?”.
Collins S.M., (2005), “Comments on “Financial Globalization, Growth, and Volatility in Developing Countries,” by Eswar Prasad, Kenneth Rogoff, Shang-Jin Wei, and M. Ayhan Kose,” forthcoming in Globalization and Poverty, ed. by Ann Harrison.
D’Apice V., Ferri G., (2010), “Financial Instability: Toolkit for Interpreting Boom and Bust Cycle”, Palgrave Macmillan Studies in Banking and Financial Institutions, London.
De Jonghe O., (2009), “Back to the Basics in Banking? A Micro-Analysis of Banking System Stability”, forthcoming in Journal of Financial Intermediation.
Demirguc-Kunt A., Detragiache E., (1998), “Financial Liberalization and Financial Fragility”, World Bank Policy Research Working paper No 1917.
Faria A., Mauro P., (2005), “Institutions and the External Capital Structure of Countries”, IMF Working Paper 04/236.
Ferri G., (2001), "Capital Adequacy Requirements: Impact and Evolution", Opening Remarks, as guest editor, of the special issue (no. 3/2001) Economic Notes.
Gorton G.B., (2009), “Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007”, Prepared for the Federal Reserve Bank of Atlanta’s 2009 Financial Markets Conference: Financial Innovation and Crisis, May 11-13, 2009.
Institute of International Finance (2010), "Interim Report on the Cumulative Impact on the Global Economy of Proposed Changes in the Banking Regulatory Framework".
Kose M.A., Prasad E., Rogoff R., Wei S-J., (2006), “Financial Globalization: A Reappraisal”, IMF WP 06/189.
Laeven, L., Levine R., (2010), “Bank Governance, Regulation and Risk Taking”, Journal of Financial Economics, forthcoming.
Laeven L., Valencia F., (2010), "Resolution of Banking Crises: The Good, the Bad, and the Ugly", IMF WP 10/146.
La Porta, R., Lopez-de-Silanes F., Shleifer A., Vishny R.W., (1997), Legal Determinant of External Finance, The Journal of Finance, 52 (3): 1131-150.
Macroeconomic Assessment Group of the Financial Stability Board and Basel Committee on Banking Supervision, (2010), Assessing the macroeconomic impact of the transition to stronger capital and liquidity requirements, Bank for International Settlements.
Mehrez G., Kaufman D., (2000), “Transparency, Liberalization and Banking Crises”, World Bank Policy Research Working Paper No. 2286.
Shehzad C.T., De Hann J., (2009), “Financial Reform and Banking Crises”, CESifo Working Paper No. 2870.
Spiegel M., (2008), “Financial Globalization and Monetary Policy Discipline: A Survey with New Evidence from Financial Remoteness”, Federal Reserve Bank of San Francisco Working Paper 2008-10, July.
Tytell, I., Wei S-J., (2005): “Global Capital Flows and National Policy Choices,” mimeo.
Wei S-J.(2006), “Connecting two views on financial globalization: Can we make further progress?”, Journal of the Japanese and International Economies 20 459–481.