The main determinants of banking crises and the fragility of regulation: evidence from OECD countries
نویسندگان
چکیده
Banking regulation and supervision were designed to protect banks from failure, but this did not avoid the large number of banking crises recently experienced by OECD countries. Using binary response models for panel data and centering on OECD countries, this paper emphasizes the poor influence of regulation and supervision on banks’ soundness and presents the main determinants of banking crises over a long period (19 years). A regulation and supervision index is proposed, different contagion levels across countries are analyzed and a comparison between banks operating in countries with bank-based and market-based financial systems is made.
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