Importance The banking sector is a crucial component of any economy, where crises may arise due to general (systemic) or internal causes. Economic literature fails to sufficiently and completely define a systemic banking crisis. The research focuses on causes, patterns of banking crises and their origination, and a combination of financial and economic relations and general cause-and-effect relations that induce them. Objectives This research aims to identify what causes banking crises. In this respect, I examine theoretical approaches to revealing the substance and classification of banking crises, and their specifics. Methods The research relies upon a systems approach and monographic, economic and statistical methods. Results I reviewed various stances of scholars concerning the origination of banking crises and their causes. I investigate the specifics and reasons for banking crises, thus making recommendations on how to increase the sector's resistance to them. It is especially important, since currently Russia is undergoing another banking crisis. Conclusions and Relevance National and foreign literature points out several approaches to the defining of banking crisis. However, there is no formal and generally accepted wording of this phenomenon. There are also many researches into causes of banking crises. It is possible to single out three approaches to determining what causes them, i.e. macroeconomic, microeconomic and institutional reasons.
Keywords: bank, systemic banking crisis, banking sector
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