Skip to Main content Skip to Navigation
Journal articles

Pandemics of the poor and banking stability

Abstract : We first develop a theoretical model that shows that the likelihood of a collapse of the banking industry of a developing country increases, as the joint prevalence of large pandemics such as AIDS and malaria increases. We also show that the optimal bank reserves increase as the prevalence increases. In the empirical part of the paper, we consider a large dataset of developing countries, and we exhibit a causality effect from combined prevalence to deposit turnover, as well as causality effect from an increase of combined prevalence to an increase in bank reserves. Those empirical facts therefore support our theoretical findings.
Complete list of metadatas

https://hal-amu.archives-ouvertes.fr/hal-01499618
Contributor : Elisabeth Lhuillier <>
Submitted on : Friday, March 31, 2017 - 5:06:03 PM
Last modification on : Wednesday, August 5, 2020 - 3:16:13 AM

Identifiers

  • HAL Id : hal-01499618, version 1

Collections

Citation

Thomas Lagoarde-Segot, Patrick L. Leoni. Pandemics of the poor and banking stability. Journal of Banking and Finance, Elsevier, 2013, 37 (11), pp.4574--4583. ⟨hal-01499618⟩

Share

Metrics

Record views

191