Bank capital: Excess credit and crisis incidence
There are large and long-lasting negative effects on output from recurrent financial crises in market economies. Policy makers need to know if these financial crises are endogenous and subject to policy interventions or are exogenous events like earthquakes. We survey the literature about the links...
Enregistré dans:
| Auteurs principaux: | , |
|---|---|
| Format: | Article ou chapitre numérique |
| Langue: | Français |
| Publié: |
2020
|
| Sujets: | |
| Accès en ligne: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| id |
cairn-REOF_167_0121 |
|---|---|
| record_format |
cairn |
| spelling |
cairn-REOF_167_0121REOFRevue de l'OFCE https://shs.cairn.info/revue-de-l-ofce-2020-3-page-121?lang=en https://doi.org/10.3917/reof.167.0121 Bank capital: Excess credit and crisis incidence Barrell, RayKarim, Dilruba2020 banking crisesfinancial stabilitymacroprudential policyfre Revue de l'OFCE | 167 | 3 | 2020-12-01 | p. 121-137 | 1265-9576 REOF_16741 There are large and long-lasting negative effects on output from recurrent financial crises in market economies. Policy makers need to know if these financial crises are endogenous and subject to policy interventions or are exogenous events like earthquakes. We survey the literature about the links between credit growth and crises over the last 130 years. We then go on to look at the determinants of financial crises both narrowly and broadly defined in market economies, stressing the roles of bank capital, available on book liquidity, property price bubbles and current account deficits. We look at the role of credit growth, which is often seen as the main link between the macroeconomy and crises, and stress that it is largely absent. We look at the role of the core factors discussed above in market economies from 1980 to 2017. We suggest that crises are largely unrelated to credit developments but are influenced by banking sector behaviour. We conclude that policy makers need to contain banking excesses, not constrain the macroeconomy by directly reducing bank lending.Cairn free access |
| language |
Français |
| format |
Article ou chapitre numérique |
| building |
0/Bibliothèque numérique/ 1/Bibliothèque numérique/Cairn/ |
| topic |
banking crises financial stability macroprudential policy |
| spellingShingle |
banking crises financial stability macroprudential policy Barrell, Ray Karim, Dilruba Bank capital: Excess credit and crisis incidence |
| topic_facet |
banking crises financial stability macroprudential policy |
| description |
There are large and long-lasting negative effects on output from recurrent financial crises in market economies. Policy makers need to know if these financial crises are endogenous and subject to policy interventions or are exogenous events like earthquakes. We survey the literature about the links between credit growth and crises over the last 130 years. We then go on to look at the determinants of financial crises both narrowly and broadly defined in market economies, stressing the roles of bank capital, available on book liquidity, property price bubbles and current account deficits. We look at the role of credit growth, which is often seen as the main link between the macroeconomy and crises, and stress that it is largely absent. We look at the role of the core factors discussed above in market economies from 1980 to 2017. We suggest that crises are largely unrelated to credit developments but are influenced by banking sector behaviour. We conclude that policy makers need to contain banking excesses, not constrain the macroeconomy by directly reducing bank lending. |
| author |
Barrell, Ray Karim, Dilruba |
| author_facet |
Barrell, Ray Karim, Dilruba |
| author_sort |
Barrell, Ray |
| title |
Bank capital: Excess credit and crisis incidence |
| title_short |
Bank capital: Excess credit and crisis incidence |
| title_full |
Bank capital: Excess credit and crisis incidence |
| title_fullStr |
Bank capital: Excess credit and crisis incidence |
| title_full_unstemmed |
Bank capital: Excess credit and crisis incidence |
| title_sort |
bank capital: excess credit and crisis incidence |
| publishDate |
2020 |
| container_title |
|
| container_issue |
|
| url |
https://ezproxy.univ-orleans.fr/login?url=https://shs.cairn.info/revue-de-l-ofce-2020-3-page-121?lang=en https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.3917/reof.167.0121 |
| _version_ |
1877246506150395904 |