Why have the aftermaths of recent banking crises been so painful?

Fathom Consulting // Insights // Why have the aftermaths of recent banking crises been so painful?

Banking crises are pernicious. The econometric work that underpins Fathom’s proprietary Financial Vulnerability Indicator demonstrates that banking crises lead to three other types of financial crisis: sovereign; currency; and sudden stop. Moreover, recessions that occur alongside banking crises tend to be more painful than those that do not…