Financial Soundness Indicators and Banking Crises
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
The paper tests the effectiveness of financial soundness indicators (FSIs) as harbingers of banking crises, using multivariate logit models to see whether FSIs, broad macroeconomic indicators, and institutional indicators can indeed predict crisis occurrences. The analysis draws upon a data set of homogeneous indicators comparable across countries over the period 2005 to 2012, leveraging the IMF’s FSI database. Results indicate significant correlation between some FSIs and the occurrence of systemic banking crises, and suggest that some indicators are precursors to the occurrence of banking crises.
Series:
Working Paper No. 2013/263
Subject:
Banking crises Financial crises Financial institutions Financial sector policy and analysis Financial soundness indicators National accounts Nonperforming loans Personal income
English
Publication Date:
December 23, 2013
ISBN/ISSN:
9781484327616/1018-5941
Stock No:
WPIEA2013263
Pages:
38
Please address any questions about this title to publications@imf.org