banking crises, logit, current account, banking regulation

Was the subprime crisis unique? An analysis of the factors that help predict banking crises in OECD countries

We assess whether the subprime crisis was in some way unique or unprecedented by testing for an impact of a set of determinants on the probability of banking crises in OECD countries since 1980. The hypothesis of an exogenous probability of a crisis is not considered in the literature, and we also address it, along with testing for the effect of variables that explain crises in emerging markets. We find that a parsimonious logit model can be estimated for OECD<br />

crises, including the subprime period, featuring bank capital adequacy, liquidity, the current<br />