02021cas a2200265 a 4500 AALejournalIMF008785 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860825 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. The Real Effect of Banking Crises / Giovanni Dell'Ariccia, Raghuram Rajan, Enrica Detragiache. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (34 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 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. Mode of access: Internet Detragiache, Enrica. Rajan, Raghuram. IMF Working Papers; Working Paper ; No. 2005/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/063/001.2005.issue-063-en.xml IMF e-Library