02421cas a2200265 a 4500 AALejournalIMF005886 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872880 1018-5941 BD-DhAAL BD-DhAAL Loukoianova, Elena. Banking Crises and Crisis Dating : Theory and Evidence / Elena Loukoianova, Gianni De Nicolo, John Boyd. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (50 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 Many empirical studies of banking crises have employed "banking crisis" (BC) indicators constructedusing primarily information on government actions undertaken in response to bank distress. Weformulate a simple theoretical model of a banking industry which we use to identify and constructtheory-based measures of systemic bank shocks (SBS). Using both country-level and firm-level samples, we show that SBS indicators consistently predict BC indicators based on four major BCseries that have appeared in the literature. Therefore, BC indicatorsactually measure lagged government responses to systemic bank shocks, rather than the occurrence of crises per se. We re-examine the separate impact of macroeconomic factors, bank market structure, deposit insurance, andexternal shocks on the probability of a systemic bank shocks and on the probability of governmentresponses to bank distress. The impact of these variables on the likelihood of a government responseto bank distress is totally different from that on the likelihood of a systemic bank shock.Disentangling the effects of systemic bank shocks and government responses turns out to be crucial inunderstanding the roots of bank fragility. Many findings of a large empirical literature need to be re-assessed and/or re-interpreted. Mode of access: Internet Boyd, John. De Nicolo, Gianni. IMF Working Papers; Working Paper ; No. 2009/141 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/141/001.2009.issue-141-en.xml IMF e-Library