IDEAS home Printed from https://ideas.repec.org/p/ecm/ausm04/7.html
   My bibliography  Save this paper

Banking Crises: Prediction, Policy Implementation and Responses

Author

Listed:
  • Lina Irawati
  • Ahmed M. Khalid

Abstract

The events of the 1990s, which led to the collapse of the banking sector in many countries around the world, have renewed the need to devise some preventive policies. However, the success of these preventive measures is contingent on the predictability of the crisis both in nature and extent. This paper attempts to address these issues using data from Indonesia. The results suggest that the main determinants of the banking crisis in Indonesia were extensive non-guaranteed credit extension, squeeze in banking sector liquidity and overvalued foreign exchange. The results also identify the factors that may influence the probability of the occurrence of crisis. The paper is then extended to investigate the responsiveness of alternative policy measures to reduce the impact of a forthcoming crisis.

Suggested Citation

  • Lina Irawati & Ahmed M. Khalid, 2004. "Banking Crises: Prediction, Policy Implementation and Responses," Econometric Society 2004 Australasian Meetings 7, Econometric Society.
    • Handle: RePEc:ecm:ausm04:7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Keywords

    Banking Crises; Logit Model; Predictability; Corrective Measures; Sensitivity Analysis; Policy Responses;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:ausm04:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.