Variable

Formulation

Source

GDP growth

, at time, where GDP at current price

IFS

Terms of trade

where and is the total merchandise-export value and total merchandise-import value respectively

IFS

Inflation

, where consumer price index

IFS

Real interest

where central bank discount rate (nominal deposit rate, money market rate, treasury bill rate, govt. bond rate, saving rate, or lending rate, if the previous one is not available) and contemporaneous rate of inflation

IFS

M2/Reserves

, where M2 = the broad money drawn from line 34 + the quasi-money drawn from line 35 from IFS data series, and F = foreign exchange reserves; both converted into national currency

IFS

Credit growth

and at time t, where PVTl = total domestic-credit used by private sectors and cpi = consumer price index

IFS

GDP per capita

Ratio of GDP (in US Dollar) to total population

IFS

Existence of DIS

1 if explicitly formed DIS exists in a country, 0 otherwise

Demirguc-Kunt et al. [17]

Remains of the past crisis

0 if there wasn’t any past crisis; otherwise, the inverse of the period (in years) between two crises. Note that the past crises considered are the crises that took place in the 1980s and the 1990s.

Caprio & Klingebiel [18]