Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis

This paper uses event history analysis to test the significance of several macro-economic and bank-specific variables in explaining bank failures during the Venezuelan banking crisis of the mid-1990s. Poor bank profitability, proxied by a low net interest margin, and low GDP growth are found signifi...

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Detalles Bibliográficos
Autor principal: Alicia García Herrero
Formato: Artículo científico
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2005
Materias:
Economía y Finanzas
Venezuela
banking crisis
early indicators
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32314103
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32314103oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-32314103oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Venezuela
banking crisis
early indicators
spellingShingle Economía y Finanzas
Venezuela
banking crisis
early indicators
Alicia García Herrero
Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
topic_facet Economía y Finanzas
Venezuela
banking crisis
early indicators
description This paper uses event history analysis to test the significance of several macro-economic and bank-specific variables in explaining bank failures during the Venezuelan banking crisis of the mid-1990s. Poor bank profitability, proxied by a low net interest margin, and low GDP growth are found significant in increasing the probability of bank failure. Other useful indicators, for some model specifications, are the share of nonperforming loans and that of non productive assets to banks’ own funds, which raise the likelihood of crisis. A large amount of bank liquid assets, in turn, reduces the likelihood of failure for some model specifications. The opposite is true for high real deposit rates. Although it could be interpreted, at first sight, as a too restrictive monetary policy, this is not supported by the lack of significance of the real lending rate and, even more so, real money growth, a more direct indicator of the monetary policy stance.
format Artículo científico
Artículo científico
author Alicia García Herrero
author_facet Alicia García Herrero
author_sort Alicia García Herrero
title Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
title_short Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
title_full Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
title_fullStr Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
title_full_unstemmed Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
title_sort determinants of the venezuelan banking crisis of the mid-1990s: an event history analysis
publisher Centro de Investigación y Docencia Económicas, A.C.
publishDate 2005
url http://www.redalyc.org/articulo.oa?id=32314103
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32314103oai
work_keys_str_mv AT aliciagarciaherrero determinantsofthevenezuelanbankingcrisisofthemid1990saneventhistoryanalysis
bdutipo_str Repositorios
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