The past banking crises in the developed countries illustrate the importance of the damage, both in terms of direct fiscal costs relating mainly to managing the crisis and loss of economic activity.
In this regard, an academic article published in Journal of Banking and Finance in 2003, assessed the cumulative consequences of past banking crises in terms of output dip and fiscal costs for nine developed countries. As indicated in the table (1), the impact for Japan, since 1992, amounts to 28% in terms of GDP and 20% in terms of fiscal costs.