1.

Record Nr.

UNINA9910816924403321

Autore

Poghosyan Tigran

Titolo

Distress in European banks : an analysis based on a new data set / / Tigran Poghosyan and Martin Cihak

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, 2009

ISBN

1-4623-4569-7

1-4527-9346-8

1-4518-7156-2

1-282-84231-5

9786612842313

Edizione

[1st ed.]

Descrizione fisica

1 online resource (39 p.)

Collana

IMF working paper ; ; WP/09/9

Altri autori (Persone)

CihakMartin

Disciplina

332.1068;332.10684

Soggetti

Banks and banking - European Union countries

Europe Economic conditions

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

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; Figures; 1. Overview of Distress Events by Year and by Country, 1995-2007; Tables; 1. Database Overview; 2. Determinants of Bank Distress; IV. Estimation Results; A. Baseline Estimate; B. Robustness Checks; 3. Logit Estimation Results; C. Prediction Results; 4. Type I and Type II Errors; 2. Banks at Risk; 3. Assets at Risk; D. Marginal Effects

4. Marginal Effects of Significant CAMEL Covariates5. Trade-off in the Impact on PD between Pairs of Significant CAMEL Covariates; V. Conclusion; Appendices; I. Early Warning Systems for Banking Supervision:; II. European Banking System; III. European Structured Early Intervention and Resolution; References

Sommario/riassunto

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.