The role of uncontrolled bank credit growth on bank crises in the period prior to and since the global financial crisis has been discussed widely.  In recent modelling of bank crises a controllable variable credit- to – GDP gap has been vastly used. This study sets out to analyze the roles of growth on bank credits, NPLs and credit to GDP gap on bank crises. The data is used for the years between 1999-2014 for 46 emerging and developed countries. The Z scores and capital adequacy ratio are used as control variables in a panel logit model.  Our findings indicate that the bank credits are significant on bank crises. However, it should be noted that with the bank credits that cause rise in NPLs and the systemic risk carry higher risk. It is generally accepted that the capital adequacy regulations have important role on having a sound and stable banking system. The results suggest that the high and firm capital adequacy ratios instead of having a diminishing effect recently are causing  higher risks.

JEL Classification: G21.

Keywords: Banking Crises; Systematic Risk; Bank Credits.

*Corresponding author.