Developing indicators to provide early warnings of banking crises.(Financial Markets): An article from: Finance & Development
Book Details
Author(s)Brenda Gonzales-Hermosillo
PublisherInternational Monetary Fund
ISBN / ASINB00098UJAE
ISBN-13978B00098UJA7
AvailabilityAvailable for download now
Sales Rank10,292,107
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from Finance & Development, published by International Monetary Fund on June 1, 1999. The length of the article is 2529 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: The potentially damaging effects of bank failures and banking system crises necessitate the development of basic indicators that can provide early warnings of serious banking problems. These indicators can help countries understand the dynamics of incipient banking crises and thus enable them to manage their financial sectors and their economies better. To shed some light on the matter, five recent episodes of banking system distress were examined. These banking crises occurred in the US southwest (1986-92), the US northeast (1991-92), California (1992-93), Mexico (1994-95) and Colombia (1982-87). One empirical finding, which is consistent for all the regions and countries examined, is that a high ratio of nonperforming loans to total assets signal a bank's distress and both an increase in the profitability that it will subsequently fail and a decrease in its expected survival time.
Citation Details
Title: Developing indicators to provide early warnings of banking crises.(Financial Markets)
Author: Brenda Gonzales-Hermosillo
Publication:Finance & Development (Magazine/Journal)
Date: June 1, 1999
Publisher: International Monetary Fund
Volume: 36 Issue: 2 Page: 36(4)
Distributed by Thomson Gale
From the supplier: The potentially damaging effects of bank failures and banking system crises necessitate the development of basic indicators that can provide early warnings of serious banking problems. These indicators can help countries understand the dynamics of incipient banking crises and thus enable them to manage their financial sectors and their economies better. To shed some light on the matter, five recent episodes of banking system distress were examined. These banking crises occurred in the US southwest (1986-92), the US northeast (1991-92), California (1992-93), Mexico (1994-95) and Colombia (1982-87). One empirical finding, which is consistent for all the regions and countries examined, is that a high ratio of nonperforming loans to total assets signal a bank's distress and both an increase in the profitability that it will subsequently fail and a decrease in its expected survival time.
Citation Details
Title: Developing indicators to provide early warnings of banking crises.(Financial Markets)
Author: Brenda Gonzales-Hermosillo
Publication:Finance & Development (Magazine/Journal)
Date: June 1, 1999
Publisher: International Monetary Fund
Volume: 36 Issue: 2 Page: 36(4)
Distributed by Thomson Gale
