Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis
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| Format: | Artículo científico |
| Language: | en |
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Centro de Investigación y Docencia Económicas, A.C.
2005
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| _version_ | 1876451612045606912 |
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| author | Alicia García Herrero |
| author_facet | Alicia García Herrero |
| contents | Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis Alicia García Herrero Economía y Finanzas Venezuela banking crisis early indicators This paper uses event history analysis to test the significance ofseveral macro-economic and bank-specific variables in explaining bank failuresduring the Venezuelan banking crisis of the mid-1990s. Poor bankprofitability, proxied by a low net interest margin, and low GDP growthare found significant in increasing the probability of bank failure. Otheruseful indicators, for some model specifications, are the share of nonperformingloans 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 supportedby the lack of significance of the real lending rate and, even moreso, real money growth, a more direct indicator of the monetary policystance. 2005 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32314103 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.1 Vol.XIV |
| format | Artículo científico |
| id | redalyc_32314103 |
| institution | Redalyc |
| language | en |
| publishDate | 2005 |
| publisher | Centro de Investigación y Docencia Económicas, A.C. |
| spellingShingle | Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis Alicia García Herrero Economía y Finanzas Venezuela banking crisis early indicators Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis Alicia García Herrero Economía y Finanzas Venezuela banking crisis early indicators This paper uses event history analysis to test the significance ofseveral macro-economic and bank-specific variables in explaining bank failuresduring the Venezuelan banking crisis of the mid-1990s. Poor bankprofitability, proxied by a low net interest margin, and low GDP growthare found significant in increasing the probability of bank failure. Otheruseful indicators, for some model specifications, are the share of nonperformingloans 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 supportedby the lack of significance of the real lending rate and, even moreso, real money growth, a more direct indicator of the monetary policystance. 2005 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32314103 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.1 Vol.XIV |
| title | Determinants of the Venezuelan Banking Crisis of the Mid-1990s: An Event History Analysis |
| topic | Economía y Finanzas Venezuela banking crisis early indicators |
| url | https://www.redalyc.org/articulo.oa?id=32314103 |