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Microeconometrics of Banking$
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Hans Degryse, Moshe Kim, and Steven Ongena

Print publication date: 2009

Print ISBN-13: 9780195340471

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195340471.001.0001

Individual Bank Runs and Systemic Risk

Chapter:
(p. 149 ) 7 Individual Bank Runs and Systemic Risk
Source:
Microeconometrics of Banking
Author(s):

Hans Degryse

Moshe Kim

Steven Ongena

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195340471.003.0007

This chapter looks at individual bank runs and systemic risk featuring the evidence on the determinants of banking crises: market and economic conditions, implications of banking crises and their results, regulation and banking crises, and interbank market exposure and contagion. Preventing banking crises has thus far been a frustrating exercise, as the frequency and number of crises seem to have been increasing. Thus, understanding of the reasons behind and the consequences of bank runs and panics is of utmost importance. This chapter attempts to explain the probable reasons for individual bank runs and the association and perhaps causation between market structure and contagion. It also tries to evaluate the effects of banking crises on the economy as a whole and assess their effects on the propagation and prolongation of recessions.

Keywords:   bank runs, systemic risk, banking crises, bank panics, contagion, bank recession

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