Distress in European Banks : An Analysis Based on a New Dataset.
Material type: TextSeries: IMF Working PapersPublisher: Washington : International Monetary Fund, 2009Copyright date: ©2009Description: 1 online resource (39 pages)Content type: text Media type: computer Carrier type: online resourceISBN: 9781451915921Subject(s): Banks and banking -- European Union countries | Europe -- Economic conditionsGenre/Form: Electronic books.Additional physical formats: Print version:: Distress in European Banks : An Analysis Based on a New DatasetDDC classification: 332.1068 | 332.10684 LOC classification: HG1582.E85 -- P64 2009ebOnline resources: Click to ViewIntro -- Contents -- I. Introduction -- II. Motivation -- A. Early Warning Systems for Banking Soundness -- B. Examples of Uses of the Early Warning Systems -- III. Methodology and Data -- A. Estimation Methodology -- B. Data -- IV. Estimation Results -- A. Baseline Estimate -- B. Robustness Checks -- C. Prediction Results -- D. Marginal Effects -- V. Conclusion -- References -- Tables -- 1. Database Overview -- 2. Determinants of Bank Distress -- 3. Logit Estimation Results -- 4. Type I and Type II Errors -- Figures -- 1. Overview of Distress Events by Year and by Country, 1995-2007 -- 2. Banks at Risk -- 3. Assets at Risk -- 4. Marginal Effects of Significant CAMEL Covariates -- 5. Trade-off in the Impact on PD between Pairs of Significant CAMEL Covariates -- Appendices -- I. Early Warning Systems for Banking Supervision: -- II. European Banking System -- III. European Structured Early Intervention and Resolution.
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.
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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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