Distress in European banks :
an analysis based on a new data set /
prepared by Tigran Poghosyan and Martin Čihák.

Description

Main Author

Poghosyan, Tigran.

Related Names

Čihák, Martin.
International Monetary Fund. European Dept.

Language(s)

English

Published

Washington, D.C. : International Monetary Fund, c2009.

Subjects

Bank failures > Bank failures / European Union countries > Bank failures / European Union countries / Econometric models.
Banks and banking > Banks and banking / European Union countries > Banks and banking / European Union countries / Econometric models.
Financial crises > Financial crises / European Union countries > Financial crises / European Union countries / Econometric models.

Summary

The global financial crisis has highlighted the importance of early identification of weak banks: when problems are identified late, solutions are much more costly. Until recently, Europe has seen only a small number of outright bank failures, which made the estimation of early warning models for bank supervision very difficult. This paper presents a unique database of individual bank distress across the European Union from mid-1990s to 2008. Using this data set, we analyze the causes of banking distress in Europe. We identify a set of indicators and thresholds that can help to distinguish sound banks from those vulnerable to financial distress.

Note

"January 2009."
At head of title: European Department.
Also available via the World Wide Web.

Physical Description

37 p. : ill. ; 28 cm.

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