Effect of Financial Liberalization on the Probability of Occurrence of Banking Crises



Summary

This study examines the relationship between financial liberalization and the advent probability of banking crises because of institutional quality. We used a logit panel data for a sample of fifty developing countries during the period (1990-2014). The results show that there is a positive relationship between financial liberalization and banking crises and the strengthening of institutional quality overcomes the problem of banking crises.


Keywords

banking crises, financial liberalization, institutional quality