01809cas a2200253 a 4500 AALejournalIMF005036 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869545 1018-5941 BD-DhAAL BD-DhAAL Duttagupta, Rupa. The Anatomy of Banking Crises / Rupa Duttagupta, Paul Cashin. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper uses a Binary Classification Tree (BCT) model to analyze banking crises in 50 emerging market and developing countries during 1990-2005. The BCT identifies key indicators and their threshold values at which vulnerability to banking crisis increases. The three conditions identified as crisis-prone-(i) very high inflation, (ii) highly dollarized bank deposits combined with nominal depreciation or low liquidity, and (iii) low bank profitability-highlight that foreign currency risk, poor financial soundness, and macroeconomic instability are key vulnerabilities triggering banking crises. The main results survive under alternative robustness checks, confirming the importance of the BCT approach for monitoring banking system vulnerabilities. Mode of access: Internet Cashin, Paul. IMF Working Papers; Working Paper ; No. 2008/093 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/093/001.2008.issue-093-en.xml IMF e-Library