## Financial Soundness Indicators and Banking Crises

_IMF Working Papers, December 23, 2013_

## Source details

**Canonical URL:** [Financial Soundness Indicators and Banking Crises](https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-soundness-indicators-and-banking-crises-41168)

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## Bibliographic details
- Authors: Matias Costa Navajas, Aaron Thegeya
- Published: December 23, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484327616.001

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### Research question and methodology
- Tests the effectiveness of financial soundness indicators (FSIs) as harbingers of banking crises.
- Uses multivariate logit models to assess whether FSIs, broad macroeconomic indicators, and institutional indicators can predict crisis occurrences.
- Analysis draws upon a data set of homogeneous indicators comparable across countries over the period 2005 to 2012, leveraging the IMF’s FSI database.

### Key findings
- Results indicate significant correlation between some FSIs and the occurrence of systemic banking crises.
- Some indicators are identified as precursors to the occurrence of banking crises.

### Data and scope
- Data source: IMF’s FSI database.
- Coverage period: 2005 to 2012.
- Pages: 38
- Volume: 2013
- Issue: 263
- Series: Working Paper No. 2013/263
- DOI: https://doi.org/10.5089/9781484327616.001
- ISBN: 9781484327616
- ISSN: 1018-5941
- Publication date: December 23, 2013
- Authors: Matias Costa Navajas, Aaron Thegeya

### Topics and keywords
- Subjects: Banking crises, Financial crises, Financial institutions, Financial sector policy and analysis, Financial soundness indicators, National accounts, Nonperforming loans, Personal income
- Keywords: banking, banking crises, banking crisis, core FSI indicator, crisis country, Financial soundness indicators, FSI data, Global, macroprudential analysis, Nonperforming loans, NPL ratio, Personal income, return on assets, return on equity, WP

*Summary based on "Financial Soundness Indicators and Banking Crises", IMF Working Paper No. 2013/263.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-soundness-indicators-and-banking-crises-41168_