Semantic Scholar Open Access 2008 489 sitasi

Comparing early warning systems for banking crises

E. Davis D. Karim

Lihat Sumber DOI

Abstrak

Despite the extensive literature on prediction of banking crises by Early Warning Systems (EWSs), their practical use by policy makers is limited, even in the international financial institutions. This is a paradox since the changing nature of banking risks as more economies liberalise and develop their financial systems, as well as ongoing innovation, makes the use of EWS for informing policies aimed at preventing crises more necessary than ever. In this context, we assess the logit and signal extraction EWS for banking crises on a comprehensive common dataset. We suggest that logit is the most appropriate approach for global EWS and signal extraction for country-specific EWS. Furthermore, it is important to consider the policy maker's objectives when designing predictive models and setting related thresholds since there is a sharp trade-off between correctly calling crises and false alarms.

Topik & Kata Kunci

Business

Penulis (2)

E. Davis

D. Karim

Format Sitasi

APA MLA BibTeX

Davis, E., Karim, D. (2008). Comparing early warning systems for banking crises. https://doi.org/10.1016/J.JFS.2007.12.004

Akses Cepat

Lihat di Sumber doi.org/10.1016/J.JFS.2007.12.004

Informasi Jurnal

Tahun Terbit: 2008
Bahasa: en
Total Sitasi: 489×
Sumber Database: Semantic Scholar
DOI: 10.1016/J.JFS.2007.12.004
Akses: Open Access ✓