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Was the 2007 crisis really a global banking crisis?

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  • Shehzad, Choudhry Tanveer
  • De Haan, Jakob

Abstract

We argue that the 2007 crisis was not a global banking crisis. Stock prices of banks in emerging countries faced a temporary shock but quickly recovered, while stock prices of banks located in industrial countries remained much lower than before the 2007 crisis. Our results also suggest that stock prices of large banks were affected more during the crisis than those of small banks. We also find that managerial efficiency, loan quality, leverage, and the volume of outstanding loans affect bank stock prices.

Suggested Citation

  • Shehzad, Choudhry Tanveer & De Haan, Jakob, 2013. "Was the 2007 crisis really a global banking crisis?," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 113-124.
    • Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:113-124
    DOI: 10.1016/j.najef.2012.04.002
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    More about this item

    Keywords

    Financial crises; Bank stock prices; Bank size; Bank strategy;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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