What is really common in the run-up to banking crises?

Arguing that crises are similar if they are predictable from historical experience, we employ panel logit models to examine similarities in the run-ups to the current global financial crisis and historical banking crises. Asset bubbles are the most common precursors.

► We examine similarities of the current global crisis and historical banking crises. ► Panel logit models are employed. ► The finding is that asset bubbles are the most common precursors.