If owners walk away from their homes, credit losses could be 1 trillion or more, wiping out most of the US financial system s capital and leading to a systemic banking crisis.

That will exacerbate the banking crisis.

As a result, investment banking operations might need to be rescued if they pose a systemic threat.

Similarly, the combined debt of Greece, Ireland, and Portugal is small relative to the eurozone economy, but the European banking system is still so weak that these countries debt problems can create a systemic crisis.

This suggests the following solution to the banking crisis.

But the stimulus measures transformed a banking crisis into a fiscal and sovereign debt crisis.

There is a parallel between the ongoing euro crisis and the international banking crisis of 1982.

A peripheral debt crisis has mutated into a systemic crisis because the eurozone s financial system is too interconnected and too weak.

The potential systemic crisis threatens to accelerate deleveraging further, with serious consequences for emerging Europe.

Southern Europe is more inclined to view the crisis as having resulted from systemic flaws.

Overall, the outlook for post crisis international banking has turned positive.

The crisis has starkly revealed the insufficiencies of existing banking supervision.

As the report noted, the huge and highly concentrated banking sector s problems could quickly escalate to systemic proportions with serious economic repercussions.

So we now have recession, a severe financial crisis, and a severe banking crisis in the advanced economies.

The Spanish crisis may well force them to create a banking union.

The 1990s also saw Venezuela experience a major banking crisis in 1994.

This might be appropriate in times of systemic crisis, but it is not sustainable in normal times.

Thus, there is systemic market risk, and unregulated securitization of banking assets, which was the main cause of the recent collapse, adds to it.

The current account deficit has been almost eliminated, and the banking crisis contained.

So long as the eurozone s systemic risk is not addressed, sovereign defaults are not unlikely, leading to extended bank bailouts that could carry unacceptable costs. In that case, a full blown banking crisis could bring about a depression in the eurozone and, perhaps, globally.

This time, virtually every economy is suffering substantially and the banking crisis is global.

WASHINGTON, DC Since the global financial crisis, banking has practically become a swear word.

This points to a systemic dimension of the crisis that cannot be reduced to profligate behavior by fiscal sinners.

Russia is just about to enter the third act of this tragedy, a banking crisis.

The aftermath of the banking crisis requires thinking about not only the most appropriate form of banking legislation, but also the appropriate size of the state.

Likewise, Japan responded to its banking crisis by creating very large merged institutions, while the US repealed much of the depression era legislation that restricted banking.

And, beyond transfers, will Europeans, or some of them, agree to create a banking union (that is, Europeanization of banking supervision, deposit insurance, and crisis resolution)?

If anything, the proclamation of a systemic crisis poured fuel on the fire. Investors took Europe s leaders at their word, because politicians usually downplay rather than overstate a crisis.

Ditching the euro might trigger a banking crisis, capital flight, inflation, and perhaps even sovereign default.

Official crisis lending can buy time to prepare, and it can help to stop a banking sector crisis, but it cannot substitute for reform.

The regulatory hybrid securities are thus designed to deal with the very source of systemic instability that the current crisis highlighted.

Prevent the princes of Wall Street who led us into the crisis from profiting from the systemic risk that they created.

Owing to the former, the risks to Asia from a European banking crisis cannot be taken lightly.

Fears surfaced of another banking crisis, the imminent collapse of a monstrous property bubble, and runaway inflation.

Unfortunately, despite the enormous harm from the financial crisis, little has changed in the politics of banking.

In 2000, Ecuador changed its currency from the sucre to the U.S. dollar following a banking crisis.

We have achieved important results on the way to a banking union, notably on supervision. Now we need to work on the second pillar, resolution of the banking crisis.

Moreover, they face an economy starved of credit, in which the crisis endangered many companies whose bankruptcy would have no systemic effect.

Finally, after Mexico s 1994 95 peso crisis and the 1997 1998 Asian financial crisis, the US exported its new banking model to the emerging market economies.

Loosening monetary policy would increase significantly the risks stemming from local government debt and shadow banking, while tightening monetary policy would fully expose those risks, posing a serious systemic threat.

The Dutch and American central banks, with direct oversight of their banking systems, were no more effective in identifying potentially dangerous systemic issues than were non central bank regulators elsewhere.

A key characteristic of the European crisis has been the strong correlation between banking stress and sovereign distress.

The global crisis erupted because major problems in the functioning of the banking sector had been left unaddressed.

For years to come, the private banking sector will be preoccupied with the consequences of the financial crisis.

The best case against Glass Steagall s repeal is not that mixing investment and commercial banking caused the crisis.