WP/08/224
Systemic Banking Crises: A New Database Luc Laeven and Fabian Valencia
© 2008 International Monetary Fund
WP/08/224
IMF Working Paper Research Department Systemic Banking Crises: A New Database Prepared by Luc Laeven and Fabian Valencia1 Authorized for distribution by Stijn Claessens November 2008 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
This paper presents a new database on the timing of systemic banking crises and policy responses to resolve them. The database covers the universe of systemic banking crises for the period 1970-2007, with detailed data on crisis containment and resolution policies for 42 crisis episodes, and also includes data on the timing of currency crises and sovereign debt crises. The database extends and builds on the Caprio, Klingebiel, Laeven, and Noguera (2005) banking crisis database, and is the most complete and detailed database on banking crises to date.
JEL Classification Numbers: G21, G28 Keywords: banking crisis, financial crisis, crisis resolution, database Author’s E-Mail Address:
[email protected],
[email protected] 1
Laeven is affiliated with the International Monetary Fund (IMF) and the Center for Economic Policy Research (CEPR) and Valencia is affiliated with the IMF. The authors thank Olivier Blanchard, Eduardo Borensztein, Martin Cihak, Stijn Claessens, Luis Cortavarria-Checkley, Giovanni dell’Ariccia, David Hoelscher, Simon Johnson, Ashok Mody, Jonathan Ostry, and Bob Traa for comments and discussions, and Ming Ai, Chuling Chen, and Mattia Landoni for excellent research assistance.
2 Contents
Page
I. Introduction ............................................................................................................................3 II. Crisis Dates ...........................................................................................................................5 A. Banking Crises ..........................................................................................................5 B. Currency Crises .........................................................................................................6 C. Sovereign Debt Crises...............................................................................................6 D. Frequency of Crises and Occurrence of Twin Crises ...............................................6 III. Crisis Containment and Resolution .....................................................................................7 A. Overview and Initial Conditions ...............................................................................7 B. Crisis Containment Policies ......................................................................................9 C. Crisis Resolution Policies........................................................................................12 D. Macroeconomic Policies .........................................................................................16 E. Outcome Variables ..................................................................................................17 IV. Descriptive Statistics .........................................................................................................18 A. Initial Conditions.....................................................................................................18 B. Crisis Containment..................................................................................................20 C. Crisis Resolution .....................................................................................................22 D. Fiscal Costs and Real Effects of Banking Crises....................................................
