Banking crisis dummy (1=banking crisis, 0=none)

This indicator serves to identify the onset and cessation of systemic banking crises by employing a binary classification system. A banking crisis is categorized as systemic when two principal conditions are fulfilled: first, there are clear manifestations of financial turmoil, such as widespread bank runs, significant losses, or notable bank bankruptcies; second, there is a substantial policy response from banking authorities aimed at mitigating the impact of these losses. The initiation of the crisis is marked by the first year both conditions coincide, while the termination is recognized in the year preceding a dual resurgence of real GDP and real credit growth, sustained over two consecutive years. This dynamic measure is essential for understanding the health and resilience of the banking sector and its broader economic implications. Source: