Monitoring Banking Sector Fragility : A Multivariate Logit Approach with an Application to the 1996-97 Banking Crises

@inproceedings{DemirgKunt1989MonitoringBS,
  title={Monitoring Banking Sector Fragility : A Multivariate Logit Approach with an Application to the 1996-97 Banking Crises},
  author={Asli Demirg{\"u}ç-Kunt and Enrica Detragiache},
  year={1989}
}
The paper explores how a multivariate logit empirical model of banking crisis probabilities can be used to monitor banking sector fragility. The proposed approach relies on readily available data, and the fragility assessment has a clear interpretation based on in-sample statistics. Also, the monitoring system can be tailored to fit the preferences of the decision-makers, and the model has better in-sample performance than currently available alternatives. In spite of these advantages, the… CONTINUE READING
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