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Identification and Classification of Problem Banks

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  • Orbeta, Aniceto Jr. C.
  • Llanto, Gilberto M.

Abstract

This paper reports the empirical results of an attempt to develop a statistical classification system for rural banks using common financial ratios as predictor variables. Though it provides a formal and fast way to classify banks, the classical techniques utilized in this paper should not be viewed as a substitute to direct and on-site bank examination.

Suggested Citation

  • Orbeta, Aniceto Jr. C. & Llanto, Gilberto M., 1992. "Identification and Classification of Problem Banks," Philippine Journal of Development JPD 1992 Vol. XIX No.1-e, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:jpd_1992_vol__xix_no_1-e
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    References listed on IDEAS

    as
    1. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    2. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    3. Joy, O. Maurice & Tollefson, John O., 1975. "On the Financial Applications of Discriminant Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(5), pages 723-739, December.
    4. Graham, David R & Humphrey, David Burras, 1978. "Bank Examination Data as Predictors of Bank Net Loan Losses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 10(4), pages 491-504, November.
    5. Korobow, Leon & Stuhr, David, 1985. "Performance measurement of early warning models : Comments on west and other weakness/failure prediction models," Journal of Banking & Finance, Elsevier, vol. 9(2), pages 267-273, June.
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    Keywords

    financial system; banking system;

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