Laeven and Valencia (2010) estimate
that while the median direct fiscal cost of the 2007-2009 systemic banking crises for all countries
was about 4.9 percent of GDP, or about half the historical (1970-2006) median of 10 percent, for
advanced economies these costs were higher (5.9 percent of GDP compared to 3.7 percent
historically), partly reflecting a larger average banking system size. Similarly, for all countries,
the 2007-2009 crisis entailed higher costs in terms of the median increase in public debt and
output losses, although for advanced economies more specifically, these two types of costs were
lower this time around.