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How well do aggregate prudential ratios identify banking system problems?

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How well do aggregate prudential ratios identify banking system problems? / Čihák, Martin; Schaeck, Klaus.

In: Journal of Financial Stability, Vol. 6, No. 3, 01.09.2010, p. 130-144.

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Čihák, Martin ; Schaeck, Klaus. / How well do aggregate prudential ratios identify banking system problems?. In: Journal of Financial Stability. 2010 ; Vol. 6, No. 3. pp. 130-144.

Bibtex

@article{ad08ae71ebc14fe1a91bfaf3d782a3a2,
title = "How well do aggregate prudential ratios identify banking system problems?",
abstract = "Aggregate prudential ratios have become a mainstay of financial stability analysis. But how reliable are these indicators when it comes to distinguishing between strong and weak banking systems? We address this issue by analyzing the performance of aggregate prudential ratios in systemic banking crises, drawing upon a large cross-country dataset. We caution against sole reliance on these indicators, and advocate supplementing them with other tools and techniques. Nonetheless, our findings offer evidence that some of the ratios can help identify systemic banking problems.",
keywords = "Financial soundness indicators, Banking crises, Macroprudential analysis",
author = "Martin Čih{\'a}k and Klaus Schaeck",
year = "2010",
month = "9",
day = "1",
doi = "10.1016/j.jfs.2010.03.001",
language = "English",
volume = "6",
pages = "130--144",
journal = "Journal of Financial Stability",
issn = "1572-3089",
publisher = "Elsevier",
number = "3",

}

RIS

TY - JOUR

T1 - How well do aggregate prudential ratios identify banking system problems?

AU - Čihák, Martin

AU - Schaeck, Klaus

PY - 2010/9/1

Y1 - 2010/9/1

N2 - Aggregate prudential ratios have become a mainstay of financial stability analysis. But how reliable are these indicators when it comes to distinguishing between strong and weak banking systems? We address this issue by analyzing the performance of aggregate prudential ratios in systemic banking crises, drawing upon a large cross-country dataset. We caution against sole reliance on these indicators, and advocate supplementing them with other tools and techniques. Nonetheless, our findings offer evidence that some of the ratios can help identify systemic banking problems.

AB - Aggregate prudential ratios have become a mainstay of financial stability analysis. But how reliable are these indicators when it comes to distinguishing between strong and weak banking systems? We address this issue by analyzing the performance of aggregate prudential ratios in systemic banking crises, drawing upon a large cross-country dataset. We caution against sole reliance on these indicators, and advocate supplementing them with other tools and techniques. Nonetheless, our findings offer evidence that some of the ratios can help identify systemic banking problems.

KW - Financial soundness indicators

KW - Banking crises

KW - Macroprudential analysis

U2 - 10.1016/j.jfs.2010.03.001

DO - 10.1016/j.jfs.2010.03.001

M3 - Journal article

VL - 6

SP - 130

EP - 144

JO - Journal of Financial Stability

JF - Journal of Financial Stability

SN - 1572-3089

IS - 3

ER -