Financial Crises and Bank Failures: A Review of Prediction Methods

37 Pages Posted: 6 Dec 2009

See all articles by Yuliya Demyanyk

Yuliya Demyanyk

Federal Reserve Banks - Federal Reserve Bank of Cleveland

Iftekhar Hasan

Fordham University ; Bank of Finland; University of Sydney

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2009

Abstract

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, as well as outlines of the methodologies used. We analyze financial and economic circumstances associated with the US subprime mortgage crisis and the global financial turmoil that has led to severe crises in many countries. The intent of the article is to promote future empirical research that might help to prevent bank failures and financial crises.

Keywords: financial crises, banking failures, operations research, early warning methods, leading indicators, subprime markets

JEL Classification: C44, C45, C53, G01, G21

Suggested Citation

Demyanyk, Yuliya and Hasan, Iftekhar, Financial Crises and Bank Failures: A Review of Prediction Methods (December 1, 2009). Available at SSRN: https://ssrn.com/abstract=1518368 or http://dx.doi.org/10.2139/ssrn.1518368

Yuliya Demyanyk

Federal Reserve Banks - Federal Reserve Bank of Cleveland

East 6th & Superior
Cleveland, OH 44101-1387
United States

Iftekhar Hasan (Contact Author)

Fordham University ( email )

45 COLUMBUS AVENUE
GBA-5TH FLOOR
NEW YORK, NY 10023
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

University of Sydney ( email )

P.O. Box H58
Sydney, NSW 2006
Australia

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