Article ID Journal Published Year Pages File Type
5058601 Economics Letters 2015 4 Pages PDF
Abstract

•We model the determinants of banking crises using a new country-level panel database.•We allow for the interaction of capital surges, credit booms and financial fragility.•Booms increase the likelihood of crises only in relatively fragile financial systems.

Using a new country-level panel database, we explore effect of capital inflow surges, credit booms and financial fragility on the probability of banking crises. We find that booms increase the probability of a crisis only in relatively fragile financial systems.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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