Finance, Growth, and Fragility

We use indicators from the Global Financial Development Database to identify effects of financial fragility on finance-growth nexus for period 2000 2014. Regressions our cross-country sample show that and increased private credit have negative growth. This result is robust controlling systemic banking crises indicate remain whether these materialize or not. The results regulations clean up balance sheets by addressing impaired loans could make banks more resilient future shocks revitalize virtuous cycle between finance