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Quantitative Assessment of the Financial Sector

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  • DeLisle Worrell
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    Abstract

    This paper suggests a strategy designed to make best use of the available quantitative techniques of financial sector assessment. It incorporates early warning systems, financial sector forecasts, stress tests for systemically important financial institutions, interbank contagion analysis, and corporate and household financial indicators. It will seldom be possible to employ every one of these techniques, but the wider the range of methodologies used, the greater may be the insight into the strengths and vulnerabilities of the financial sector. The quantitative assessment is always complemented by a qualitative assessment, including reviews of relevant standards and codes.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 04/153.

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    Length: 26
    Date of creation: 01 Aug 2004
    Date of revision:
    Handle: RePEc:imf:imfwpa:04/153

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    Keywords: Financial soundness indicators; Financial sector; Economic models; financial stability; financial system; financial institutions; bank of england; banking; capital adequacy; banking system; national bank; financial markets; foreign exchange; currency crises; banking crises; bankruptcies; bank profitability; bank for international settlements; bank shares; financial strength; banking sector; financial systems; bank risk; financial instability; bank solvency; overvaluation; commercial property; currency crisis; bank failures; present value; interest coverage ratio; financial assets; bank indonesia; bank performance; bank failure; financial services; stock market; banking sector stability; interest rate risk; financial intermediaries; international financial markets; bond; bank assets; financial volatility; bank research; bonds; government bonds; bond issues; banking risk; corporate bond; hedge funds; foreign exchange exposure; financial structure; bank panics; financial economics; bank soundness; access to international financial markets; bank exposures; banks ? loan; capital base; stock market indices; banking system distress; banking supervision; interbank market; bank defaults; financial fragility; loan concentration; bank deposit; bank share; stock exchange; international finance; return on assets; bank capital; hedge; financial risk; money market; currency risk; corporate bond issues;

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    2. Claessens, Stijn & Djankov, Simeon & Xu, Lixin Colin, 2000. "Corporate Performance in the East Asian Financial Crisis," World Bank Research Observer, World Bank Group, World Bank Group, vol. 15(1), pages 23-46, February.
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    Citations

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    Cited by:
    1. Sorge, Marco & Virolainen, Kimmo, 2006. "A comparative analysis of macro stress-testing methodologies with application to Finland," Journal of Financial Stability, Elsevier, Elsevier, vol. 2(2), pages 113-151, June.
    2. David G. Mayes & Hanno Stremmel, 2014. "The Effectiveness of Capital Adequacy Measures in Predicting Bank Distress," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum, SUERF - The European Money and Finance Forum.
    3. International Monetary Fund, 2005. "Quantitative Assessment of a Financial System: Barbados," IMF Working Papers 05/76, International Monetary Fund.
    4. Männasoo, Kadri & Mayes, David G., 2009. "Explaining bank distress in Eastern European transition economies," Journal of Banking & Finance, Elsevier, Elsevier, vol. 33(2), pages 244-253, February.
    5. Radu Muntean, 2009. "Early Warning Models for Banking Supervision in Romania," Advances in Economic and Financial Research - DOFIN Working Paper Series, Bucharest University of Economics, Center for Advanced Research in Finance and Banking - CARFIB 39, Bucharest University of Economics, Center for Advanced Research in Finance and Banking - CARFIB.
    6. Martin Èihák, 2005. "Stress Testing of Banking Systems (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, Charles University Prague, Faculty of Social Sciences, vol. 55(9-10), pages 418-440, September.
    7. DeLisle Worrell & Andrea M. Maechler & Srobona Mitra, 2007. "Decomposing Financial Risks and Vulnerabilities in Eastern Europe," IMF Working Papers 07/248, International Monetary Fund.

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