Number of countries having a banking crisis in each year since 1800. This is based on This time is different: Eight centuries of financial folly
, which covers only 70 countries. The general upward trend might be attributed to many factors. One of these is a gradual historical increase in the percent of people who receive money for their labor. Another, elsewhere suggested reason related to more recent development trends and to banking crisis during modern era might be changes in the size of banking sector compared to overall GDP. The dramatic feature of this graph is the virtual absence of banking crises during the period of the Bretton Woods agreement
, 1945 to 1971. This analysis is similar to Figure 10.1 in Reinhart and Rogoff (2009). For more details see the help file for "bankingCrises" in the Ecdat package available from the Comprehensive R Archive Network (CRAN).
This is a list of banking crises. A banking crisis is a financial crisis that affects banking activity. Banking crises include bank runs, which affect single banks; banking panics, which affect many banks; and systemic banking crises, in which a country experiences many defaults and financial institutions and corporations face great difficulties repaying contracts. A banking crisis is marked by bank runs that lead to the demise of financial institutions, or by the demise of a financial institution that starts a string of similar demises.
A bank run occurs when many bank customers withdraw their deposits because they believe the bank might fail. There have been many runs on individual banks throughout history; for example, some of the 2008–2009 bank failures in the United States were associated with bank runs.
Banking panics and systemic banking crises
- Panic of 1819, a U.S. recession with bank failures; culmination of U.S.'s first boom-to-bust economic cycle
- Panic of 1825, a pervasive British recession in which many banks failed, nearly including the Bank of England
- Panic of 1837, a U.S. recession with bank failures, followed by a 5-year depression
- Panic of 1847, United Kingdom
- Panic of 1857, a U.S. recession with bank failures
- Panic of 1866, Europe
- Panic of 1873, a U.S. recession with bank failures, followed by a 4-year depression
- Panic of 1884, United States and Europe
- Panic of 1890, mainly affecting the United Kingdom and Argentina
- Panic of 1893, a U.S. recession with bank failures
- Australian banking crisis of 1893
- Panic of 1896, acute U.S. recession
Reinhart, Carmen M.; Rogoff, Kenneth S. (2009). This Time is Different: Eight Centuries of Financial Folly. Princeton University Press. ISBN 978-0-691-14216-6.
Taylor, Alan M. The great leveraging. NBER 18290