Prospects for Early Prognosis of Crisis Situations in the Banking Sector

Authors

Keywords
banks, banking crises, global financial and economic crisis, early prediction models for banking crisis

Summary
The first global financial and economic crisis of the present century has once again reminded the economists of the vulnerability of the banking system as far as outside shocks are concerned. Problems in the banking sector can be measured in expenses worth billions of Euros in order to support and stabilize most affected countries. In this respect the present article aims at analyzing the options for predicting banking difficulties and problems by means of models focusing on those based on the signal approach. On the basis of a conducted research an attempt has been made to create a mechanism for improvement of the signal-based models for forecasting crisis situations in the banking sector.

JEL: G21
Pages: 12
Price: 2 Points

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