A Bank of England paper co-authored by Martin Weale, an external member of the Bank of England's Monetary Policy Committee, published on Tuesday, finds strong evidence of interdependency between recessions and banking crises.

Weale and Matthew Corder, the paper's authors, use both non-parametric tests and unconditional bivariate probit models to assess whether there is evidence for interdependency between recessions and banking crises. The authors note that while it is widely suggested that