Distress in European Banks An Analysis Basedon a New Dataset

The 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 ba...

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Bibliographic Details
Main Author: Poghosyan, Tigran
Other Authors: Cihak, Martin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2009
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Distress in European Banks  |b An Analysis Basedon a New Dataset  |c Tigran Poghosyan, Martin Cihak 
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300 |a 39 pages 
651 4 |a United States 
653 |a Banks 
653 |a Finance 
653 |a Loan loss provisions 
653 |a Financial crises 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Financial sector policy and analysis 
653 |a Mortgages 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Financial Institutions and Services: General 
653 |a Banking 
653 |a Early warning systems 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Financial Risk Management 
653 |a Depository Institutions 
653 |a Economic & financial crises & disasters 
653 |a Distressed institutions 
653 |a Financial institutions 
653 |a Bank supervision 
653 |a Value of Firms 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Crisis management 
653 |a Banks and banking; State supervision 
653 |a Banks and Banking 
653 |a Bank soundness 
653 |a Financial regulation and supervision 
653 |a Financial services industry 
653 |a Finance: General 
653 |a Financial services law & regulation 
700 1 |a Cihak, Martin 
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520 |a The 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