This paper approaches the microfoundations of failures presented by Brazilian wholesale banks along the banking crisis of the mid-90´s. We test the hypothesis that wholesale banks share peculiar microfoundations of failure as compared to other banking branches, given some structural differences at least in the Brazilian case. In case of support by data to that hypothesis, early warning models as applied to Brazil shall take those features into consideration.
microfoundations of banking failures; banking crises; wholesale banks