The purpose of this paper is to examine whether the choice of exchange rate regime can affect the likelihood of banking crises in emerging countries. We estimate the impact of exchange rate arrangements on crises in a panel-data set of 56 emerging countries using a logit method. We find that...

This paper examines some determinants of banking crises in developing economies. Specifically, the effects of terms of trade shocks and capital flows are analyzed. The choice of the nominal exchange rate regime is found to be a crucial factor in the way various shocks are transmitted through the...