The Real Effect of Banking Crises
- Topics:
- Commercial Banking
- Tags:
- Banking,
- Banking Crise,
- Financial Services
- Source:
- International Monetary Fund
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Overview: 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 this article examines 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.
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Format: PDF | Size: 412KB | Date: Mar 2005 | Pages: 35




