Measuring the Severity of a Banking Crisis and Finding Its Associated Factors: How Are the Factors Different for Simple and Severe Banking Crises?
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52306#.VI-k2MnQrzE Author(s) Anichul Hoque Khan , Hasnat Dewan * Affiliation(s) Department of Economics, Thompson Rivers University, Kamloops, Canada . ABSTRACT This study measures the severity of a banking crisis by using its duration and the cost. Using this new methodology, we find that the factors associated with a severe banking crisis are not quite the same as those associated with a simple banking crisis. An ordered logit model and a large panel data set were used for this study. One of our major findings is that there exists a four-year time lag between an economic boom, or financial system liberalization, and...