Motivated by the frequently observed link between commercial property price volatility and banking crises, this paper investigates at a macroeconomic level the determination of commercial property prices and the interaction between commercial property prices and bank lending. We develop a...

The paper evaluates the contribution industrial-sector data on loan losses could make to diversifying and pricing bank risk.It derives the mean, variance and cyclical sensitivity of sectoral provisions and write offs, then assesses implications for loan pricing; standards of capital adequacy;...

Using data from the US, UK, Japan and Canada, this paper provides evidence on the benefits to an economy from multiple avenues of intermediation. The overall conclusion is that the existence of active securities markets alongside banks is indeed beneficial to the stability of corporate...

This paper uses flow-of-funds and balance sheet data to analyze the impact of financial crises on corporate financing and GDP in a range of countries. Post-crisis GDP contractions are mainly accounted for by declines in investment and inventory and are more severe for emerging market countries....

We seek to assess the effect of commercial property price movements on the behaviour and performance of individual banks in a range of industrialised economies, extending the existing micro literature on bank performance. Our results suggest that commercial property prices tend to be positively...

Existing work on early warning systems (EWS) for banking crises generally omits bank capital, bank liquidity and property prices, despite their relevance to the probability of crisis in the mind of bankers, policymakers and the public. One reason for this neglect is that most work on EWS to date...

Against the background of the acknowledged importance of off-balance-sheet exposures in the sub prime crisis, we seek to investigate whether this was a new phenomenon or common to earlier crises. Using a logit approach to predicting banking crises in 14 OECD countries we find a significant...

The financial crisis that started in August 2008 has reached a climax in the autumn of 2008 with a wave of bank nationalisations across North America and Europe. Although banking crises are not uncommon, this is the largest since 1929—33. This paper discusses the build-up to the crisis,...