Distress in European Banks: An Analysis Based on a New Dataset
AbstractThe 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.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 09/9.
Date of creation: 01 Jan 2009
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-BAN-2009-03-28 (Banking)
- NEP-EEC-2009-03-28 (European Economics)
- NEP-RMG-2009-03-28 (Risk Management)
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