EconStor >
Deutsche Bank Research, Frankfurt am Main >
Research Notes, Deutsche Bank Research >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/40640
  
Title:Monitoring banking sector risks: An applied approach PDF Logo
Authors:Weistroffer, Christian
Vallés, Veronica
Issue Date:2008
Series/Report no.:Research notes working paper series // Deutsche Bank Research 29
Abstract:Despite abundant empirical evidence on the merits and limits of early-warning systems for banking crises the day-to-day use of such systems seems to be limited. Reluctance to use such systems may partly be explained by the difficulties to operationalise the proposed models, which are often demanding in terms of data requirements and/ or methodologies. We try to overcome these difficulties and show how an early-warning system can be implemented in practice. Drawing on existing empirical work, we develop a model that provides timely and readily digestible information on macroeconomic developments, e.g. booming credit volumes, excessively rising asset prices or exchange rates, which in the past typically preceded banking crises. Our model is tailored to meet the professional needs of an internationally operating private sector financial institution and can be applied across a wide range of industrial countries and emerging markets.
Subjects:banking crisis
early-warning system
credit risk management
JEL:E44
F37
G21
Document Type:Working Paper
Appears in Collections:Research Notes, Deutsche Bank Research

Files in This Item:
File Description SizeFormat
59350402X.pdf910.43 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/40640

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.