Determinants of Banking System Stability: A Macro-Prudential Analysis
نویسندگان
چکیده
Over the past two decades, Germany experienced several periods of banking system instability rather than full-blown banking system crises. In this paper we introduce a continuous and forward-looking stability indicator for the banking system based on information on all financial institutions in Germany between 1995 and 2010. Explaining this measure by means of panel regression techniques, we identify significant macroprudential early warning indicators (such as asset price indicators, leading indicators for the business cycle and money market indicators) and spillovers. Whereas international spillover effects play a significant role across all banking sectors, regional spillover effects and the credit-toGDP ratio are most important for cooperative banks and less relevant for commercial banks.
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