Library:
Madrid
London
Paris Champerret
Paris Montparnasse
Turin
Berlin
The interest of a study on crisis prediction models applied to systemic banking crises relies on the major role played by financial institutions in general and banking institutions in particular in our modern economies. They act as intermediaries and liquidity makers, channelling and securing funds from those in possession of capital resources and fuelling it efficiently with adequate risk management considerations where there is a need to finance projects and allow economic development.
The proliferation of banking crises in the 1980s and early 1990s has shed light over the risk that large-scale financial institutions failures bear over the overall economies. The economic and social consequences of financial crises have outlined the necessity to develop a better understanding of these events, to prevent their occurrence and minimize their scope by allowing policymakers and key market participants of the global financial system to take precautionary measures. The development of effective preventive tools seems particularly urgent in advanced economies, where the costs of banking and twin crises are of greater magnitude than in emerging markets.
The term financial crisis encompasses a large range of different types of crises, but we will exclusively discuss episodes of large-scale banking crises as the main focus of this master thesis, as we find them to be a particularly relevant form of crisis to this day. The social and economic cost of these relatively rare events suffices to
justify any interest on the subject
