The Determinants of Banking Crisis in Developing end Developed Countries

The thesis presents a definition of banking crisis, which is confirmed by the observed empirical indicators. In confirmation of this determination probabilities of last crises were calculated and compared to reasonable expectations. Characterization of its effects and manifestations were studied according to banking crisis events in the banking sectors of emerging countries for the most representative period of 1982 to 2014. Based on the method of econometric logit regression, the constructed model of indicators of a banking crisis with good fitting was created using both internal and external indicators which significance was proved by appropriate tests. The most significant indicators were GDP growth level, short term external debt value in relation to export, lending interest rate in the emerging economy, ratio of capital to total assets of banks, number of nonperforming loans, M2 to reserves estimation and also appreciation/depreciation of country’s currency.