Financial Crises and Bank Failures: A Review of Prediction Methods
34 Pages Posted: 22 Jun 2009 Last revised: 1 Nov 2010
Date Written: September 4, 2009
In this article we provide a summary of empirical results obtained in several economics and operations research papers that attempt to explain, predict, or suggest remedies for financial crises or banking defaults; we also outline the methodologies used in them. We analyze financial and economic circumstances associated with the U.S. subprime mortgage crisis and the global financial turmoil that has led to severe crises in many countries. The intent of this article is to promote future empirical research for preventing bank failures and financial crises.
Keywords: subprime, financial crisis, mortgage, bank failure, operations research
JEL Classification: G01, G15, G21, C44, C45
Suggested Citation: Suggested Citation