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The Real Effect of Banking Crises
By:Mr. Giovanni Dell'Ariccia,Raghuram Rajan,Ms. Enrica Detragiache
Published on 2005-03-01 by International Monetary Fund

Banking crises are usually followed by a decline in credit and growth. Is this because crises tend to take place during economic downturns, or do banking sector problems have independent negative effects on the economy? To answer this question we examine industrial sectors with differing needs for financing. If banking crises have an exogenous detrimental effect on real activity, then sectors more dependent on external finance should perform relatively worse during banking crises. The evidence in this paper supports this view. Additional support comes from the fact that sectors that predominantly have small firms, and thus are typically bank-dependent, also perform relatively worse during banking crises. The differential effects across sectors are stronger in developing countries, in countries with less access to foreign finance, and where banking crises have been more severe.
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Book ID of The Real Effect of Banking Crises's Books is UgIrxc-ZyagC, Book which was written byMr. Giovanni Dell'Ariccia,Raghuram Rajan,Ms. Enrica Detragiachehave ETAG "PgexRZP7q34"
Book which was published by International Monetary Fund since 2005-03-01 have ISBNs, ISBN 13 Code is 9781451906189 and ISBN 10 Code is 1451906188
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Book which have "34 Pages" is Printed at BOOK under CategoryBusiness and Economics
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