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Does ESG Predict Systemic Banking Crises? A Computational Economics Model of Early Warning Systems with Interpretable Multi-Variable LSTM based on Mixture Attention

open access: yesMathematics, 2023
Systemic banking crises can be very damaging to economic development, and environmental, social, and governance (ESG) can also damage national finances, but there is no research on whether ESG affects systemic banking crises, and we fill this gap.
Shu-Ling Lin, Xiao Jin
doaj   +2 more sources

Booms and Banking Crises [PDF]

open access: yesJournal of Political Economy, 2016
Banking crises are rare events that break out in the midst of credit-intensive booms and bring about deep and long-lasting recessions. This paper presents a textbook dynamic stochastic general equilibrium model to explain these phenomena. The model features a nontrivial banking sector, where bank heterogeneity gives rise to an interbank market.
Frédéric Boissay   +2 more
openaire   +2 more sources

Sovereign defaults and banking crises [PDF]

open access: yesJournal of Monetary Economics, 2018
Episodes of sovereign default feature three key empirical regularities in connection with the banking systems of the countries where they occur: (i) sovereign defaults and banking crises tend to happen together, (ii) commercial banks have substantial holdings of government debt, and (iii) sovereign defaults result in major contractions ...
César Sosa‐Padilla
openaire   +8 more sources

Banking Crises Without Panics* [PDF]

open access: yesThe Quarterly Journal of Economics, 2020
Abstract We examine historical banking crises through the lens of bank equity declines, which cover a broad sample of episodes of banking distress with and without banking panics. To do this, we construct a new data set on bank equity returns and narrative information on banking panics for 46 countries over the period of 1870 to 2016. We
Baron, Matthew, Verner, Emil, Xiong, Wei
openaire   +2 more sources

The link between international supervision and banking crises [PDF]

open access: yesPanoeconomicus, 2010
Theoretical and empirical contributions of some economists have shown that a financial liberalisation policy implemented in a less developed institutional environment enhances the proliferation of banking crises. This leads to the conclusion that failure
Rachdi Houssem
doaj   +1 more source

Systemic Banking Crises [PDF]

open access: yesSSRN Electronic Journal, 2005
Systemic banking crises can have devastating effects on the economies of developing or industrialized countries. This Policy Discussion Paper reviews the factors that weaken banking systems and make them more susceptible to crises.
Ergungor, Ozgur Emre.   +1 more
openaire   +1 more source

The cleansing effect of banking crises

open access: yesEconomic Inquiry, 2022
We assess the cleansing effects of the recent banking crisis. In U.S. regions with higher levels of supervisory forbearance on distressed banks during the crisis, there is less restructuring in the real sector and the banking sector remains less healthy ...
R. Gropp   +3 more
semanticscholar   +1 more source

Financial Cycles – Early Warning Indicators of Banking Crises?

open access: yesIMF Working Papers, 2021
Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data from 59 advanced and emerging economies, we show that financial overheating can be detected in real time.
S. Chen, Katsiaryna Svirydzenka
semanticscholar   +1 more source

Banking system stability in crisis periods: The impact of the banking regulator independence [PDF]

open access: yesBanks and Bank Systems, 2023
Local and global financial crises are caused by a wide range of geopolitical, macro-financial, and socio-economic determinants. The purpose of this study is to assess the role of central bank independence in preventing financial crises and mitigating ...
Atik Kerimov   +4 more
doaj   +1 more source

Dynamic forecasting of banking crises with a Qual VAR

open access: yesJournal of Applied Economics, 2022
This paper applies a Qual VAR approach to generate a continuous banking crisis indicator from an underlying latent variable using a Markov Chain Monte Carlo algorithm.
Emile du Plessis
doaj   +1 more source

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