A Review of the Literature on Early Warning Systems for Banking Crises
AbstractThis paper presents a review of alternative methodologies for early detection of banking distress. The methodologies proposed are aimed to the early identification of financial distress for countries without an important recent history of bank failure, but facing an unstable international environment. We evaluate several indicators and methodologies to measure financial distress such as qualitative indicators, the signal extraction approach, limited dependent estimation and finally duration models.
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Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 183.
Date of creation: Oct 2002
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-FIN-2002-10-18 (Finance)
- NEP-HPE-2002-10-18 (History & Philosophy of Economics)
- NEP-PKE-2002-10-18 (Post Keynesian Economics)
- NEP-RMG-2002-10-18 (Risk Management)
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