Banking Crises; Determinants And Crises‘ Impact On Fiscal Cost And Economic Output

PURPOSE OF THE STUDYThis thesis‘ first empirical part studies determinants associated with the emergence of systemic banking crises. Low GDP growth, high inflation, low creditor rights, low GDP per capita and financial reforms are hypothesized to increase the probability of a banking crisis. I evaluate the determinants‘ value in explaining 80 banking crisis around the globe by employing a multivariate logit model, exactly as in Demirgüc-Kunt and Detragiache (1997). This thesis‘ second empirical part evaluates banking crises‘ effects on fiscal cost and economic output by regressing each of thes…