Design of Early Warning System for Predicting Exposure to Failure Time of Banks
The collapse and failure of a bank could have devastating consequences to the entire banking system and widespread repercussion effect on other banks and the economy as a whole. The main objective of this paper is to design an early warning system for predicting failure time of banks by type of ownership and investigating the effects of the leading indicators in predicting bankruptcy of the Iran's banks using Kaplan-Meier model and Cox hazard model in survival analysis framework. For this purpose, banks financial statement over the period of 2001-2014 were used. The study showed that the survival of Iranian banks Influenced by 13 leading variable that banking supervisors can use these indices for identifying high-risk banks. The results have shown that Private banks have been less shelf life and the cost indices, credit risk and liquidity risk are the most important factors affecting the time of bank’s insolvency.
Volume (Year): 2 (2016)
Issue (Month): 4 (March)
|Contact details of provider:|| Web page: http://www.ecoj.tabrizu.ac.ir/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0029. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.