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Metadata Glossary

CodeGFDD.OI.19
Indicator NameBanking crisis dummy (1=banking crisis, 0=none)
Short definitionDummy variable for the presence of banking crisis (1=banking crisis, 0=none)
Long definitionA banking crisis is defined as systemic if two conditions are met: a. Significant signs of financial distress in the banking system (as indicated bysignificant bank runs, losses in the banking system, and/or bank liquidations), b. Significant banking policy intervention measures in response to significant losses in the banking system. The first year that both criteria are met is considered as the year when the crisis start becoming systemic. The end of a crisis is defined the year before both real GDP growth and real credit growth are positive for at least two consecutive years.
SourceLAEVEN, L. and VALENCIA, F. (2018), “Systemic Banking Crises Revisited”, IMF WP/18/206
TopicOther
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