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International experiences of banking crises: management tools and macroeconomic consequences

Author

Listed:
  • Dániel Felcser

    (Magyar Nemzeti Bank (central bank of Hungary))

  • Gyöngyi Körmendi

    (Magyar Nemzeti Bank (central bank of Hungary))

Abstract

Our study summarises the experiences of earlier banking crises on the basis of international data. Following a review of the tools which can be used in the initial, acute phase of banking crises and a description of the lessons drawn from their application to date, we examine the macroeconomic consequences of banking crises. Based on international experiences, although the growth rate of the economy may turn positive relatively quickly after a banking crisis, output losses are high, unemployment remains a problem for a longer time, and protracted adjustment processes start in the banking sector.

Suggested Citation

  • Dániel Felcser & Gyöngyi Körmendi, 2010. "International experiences of banking crises: management tools and macroeconomic consequences," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 5(2), pages 13-21, June.
    • Handle: RePEc:mnb:bullet:v:5:y:2010:i:2:p:13-21
    as

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    File URL: http://www.mnb.hu/letoltes/felcser-kormendi-en.pdf
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    References listed on IDEAS

    as
    1. Mr. Fabian Valencia & Mr. Luc Laeven, 2008. "Systemic Banking Crises: A New Database," IMF Working Papers 2008/224, International Monetary Fund.
    2. István Mák & Judit Páles, 2009. "The role of the FX swap market in the Hungarian financial system," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 4(1), pages 24-34, May.
    3. Reinhart, Carmen M. & Rogoff, Kenneth S., 2013. "Banking crises: An equal opportunity menace," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4557-4573.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ádám Balog & György Matolcsy & Nagy Márton & Balázs Vonnák, 2014. "Credit crunch in Hungary between 2009 and 2013: is the creditless period over?," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 13(4), pages 11-34.

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    More about this item

    Keywords

    banking crisis; containment policies; monetary policy; macroeconomic effects;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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