Early Warning Models for Forecasting Banking Crises: From Signal Extraction to Neural Networks
Keywords:
banking crises, financial distress, early warning systems, logit models, neural networksAbstract
This paper reviews alternative methodologies and models to design sys-tems to help in the early detection of banking distress (EWS). The pro-posed methodologies are aimed to the early identification of financial distress for countries without an important recent history of banking failure. This paper presents traditional models often used to predict currency crisis, and more advanced approaches, such as non linear neural networks models.Downloads
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