An Overview on the Literature and History of Systemic Banking Crisis in Iran and Around the World

Document Type: Original Article

Authors

1 PhD student in Financial engineering, Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran (Corresponding Author)

3 Department of Finance, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Often, systemic banking crises initiate from one or more banks and affect countries by rapid spreading in the banking network, financial markets and economy of countries. According to Reinhart & Rogoff (2009) in the book titled "This time is Different," financial crises are pointed as an equal opportunity menace for high-income countries and emerging markets.
Although The International Monetary Fund (IMF) has not yet reported on systemic banking crisis for IRAN, but considering that upcoming crises and their possible consequences have a big similarity with those of crisis happened in the past, it can be expected, therefore, by studying the history of crises and assessing the causes of the occurrence and their implications, effective steps can be taken in line with the improvement of the global financial system against future potential crises and extent of their possible damage to the economic system of countries can be reduced.
 In the current paper, therefore, in addition to describe the history of systemic banking crisis in the world banking system, indicators for identification of these crises and control and coping methods will be described.

Keywords


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