Neural network models and the prediction of bank bankruptcy
AbstractThe number of failed banks has reached a high unparalleled since the great Depression. Research in developing predictive models for bank failures is therefore warranted and desirable in this turbulent period. In this paper, we present a neural network approach to bank failures prediction and compare its performance with existing models. Empirical results show that among alternative models, neural networks is a competitive instrument for evaluating the financial condition of a bank. The study concludes with a discussion on the potential and limitations of neural networks as a general modelling tool for financial applications.
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Bibliographic InfoArticle provided by Elsevier in its journal Omega.
Volume (Year): 19 (1991)
Issue (Month): 5 ()
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