Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation

Caprio, Gerard; D'Apice, Vincenzo; Ferri, Giovanni; Puopolo, Giovanni Walter

doi:10.2139/ssrn.1695335

Download This Paper

Open PDF in Browser

Add Paper to My Library

Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation

43 Pages Posted: 21 Oct 2010 Last revised: 22 Jun 2011

See all articles by Gerard Caprio

Vincenzo D'Apice

Center for Relationship Banking and Economics

Giovanni Walter Puopolo

CSEF - University of Naples Federico II; CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF)

There are 2 versions of this paper

Date Written: October 21, 2010

Abstract

By analysing the macro financial determinants of the Great Financial Crisis of 2007-2009 on 83 countries, we find that the probability of suffering the crisis in 2008 was larger for countries having higher levels of credit deposit ratio whereas it was lower for countries having higher levels of: i) net interest margin, ii) concentration in the banking sector, iii) restrictions to bank activities, iv) private monitoring. Our findings contribute to the ongoing discussion that can help policymakers calibrate new regulation, by achieving a reasonable trade-off between financial stability and economic growth.

Keywords: Banking Crisis, Government Intervention, Regulation

JEL Classification: G15, G18, G21

Suggested Citation: Suggested Citation

Caprio, Gerard and D'Apice, Vincenzo and Ferri, Giovanni and Puopolo, Giovanni Walter, Macro Financial Determinants of the Great Financial Crisis: Implications for Financial Regulation (October 21, 2010). Available at SSRN: https://ssrn.com/abstract=1695335 or http://dx.doi.org/10.2139/ssrn.1695335