An Overview on the Literature and History of Systemic Banking Crisis in Iran and Around the World

Document Type : Original Article

Authors

1 PhD student in Financial engineering, Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran (Corresponding Author)

3 Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Often, systemic banking crises initiate from one or more banks and affect countries by rapid spreading in the banking network, financial markets and economy of countries. According to Reinhart & Rogoff (2009) in the book titled "This time is Different," financial crises are pointed as an equal opportunity menace for high-income countries and emerging markets.
Although The International Monetary Fund (IMF) has not yet reported on systemic banking crisis for IRAN, but considering that upcoming crises and their possible consequences have a big similarity with those of crisis happened in the past, it can be expected, therefore, by studying the history of crises and assessing the causes of the occurrence and their implications, effective steps can be taken in line with the improvement of the global financial system against future potential crises and extent of their possible damage to the economic system of countries can be reduced.
 In the current paper, therefore, in addition to describe the history of systemic banking crisis in the world banking system, indicators for identification of these crises and control and coping methods will be described.

Keywords

References

1)     Abiad, A. (2003).“Early-Warning Systems: A Survey and a Regime-Switching Approach.” IMF Working Paper No. 03/32.
2)     Antunes, A. D. Bonfim, N. Monteiro, and P. Rodrigues (2014).“Early Warning Indicators of Banking Crises: Exploring New Data and Tools”. Econom ic Bulletin Banco de Portugal April 2014.
3)     Bussiere, M. and Fratzscher, M. (2006). “Towards a New Early Warning System of Financial Crises.” Journal of International Money and Finance, 25, 953–973.
4)     Davis, Philip E.; Karim, Dilruba (2008).“Comparing Early Warning Systems for Banking Crises, Journal of Financial Stability.” Vol. 4 (2008), Iss. 2, pp. 89-120.
5)     Demirgüç-Kunt, Asli; Detragiache, Enrica (2005).“Cross-Country Empirical Studies of Systemic Bank Distress: A Survey”. IMF Working Paper, No. 96/05, Washington 2005.
6)     Elsinger, Helmut; Lehar, Alfred; Summer, Martin (2006).“Using Market Information for Banking System Risk Assessment”. International Journal of Central Banking, Vol. 2 (2006), No. 1, pp. 137-165.
7)     Fabian Valencia & Luc Laeven (2012).“Systemic Banking Crises Database: An Update.” IMF Working Papers 12/163, International Monetary Fund.
8)     Kauko, Karlo (2014). “How to Foresee Banking Crises, a Survey of Empirical Literature.” Economic Systems (forthcoming).
9)     Laeven, L. and Valencia, F. (2018).“Systemic Banking Crises: A New Database.” International Monetary Fund, WP/08/224.
10)  Luc Laeven & Fabian Valencia (2012).“Systemic Banking Crises Database.” IMF Economic Review, Palgrave Macmillan, vol. 61(2), pages 225-270, June.
11)  Lilien, D.M.(1982).“Sectoral Shifts and Cyclical Unemployment.” Journal of Political Economy 90 (4), pp. 777-793.
12)  Lin, Chin-Shien; Khan, Haider A.; Wang, Ying-Chieh; Chang, Ruei-Yuan (2006).“A New Approach to Modelling Early Warnin Systems for Currency Crises: Can a Machine-Learning Fuzzy Expert System Predict the Currency Crises Effectively?” Center for International Research on the Japanese Economy Discussion Paper, CIRJE-F-411, Tokyo, April 2006.
13)  Reinhart & Rogoff (2009) “ This time is Different.” Princeton university press.
14)  Rose, A. K. and M. M. Spiegel (2009).“Cross-Country Causes and Consequences of the 2008 Crisis: Early Warning.” NBER Working Paper No. 15357.
International Journal of Finance & Managerial Accounting
Volume 4, Issue 13
April 2019
Pages 109-119

Files

Share

How to cite

Statistics