CROSS-COUNTRY STUDY ON THE DETERMINANTS OF BANK FINANCIAL DISTRESS

Revista de Administração de Empresas

Rib-type="author"> Zhen-jia-liu 关键词: Bank failure prediction;    bank;    distress;    global;    cross-country;    Previsão de falência bancária;    bancos;    crise;    global;    cross-country;    Predicción de quiebra bancaria;    banco;    dificultades;    mundial;    cross-country;   

DOI  :  10.1590/S0034-759020150510

来源: SciELO

【 摘 要 】

ABSTRACTBank failures affect owners, employees, and customers, possibly causing large-scale economic distress. Thus, banks must evaluate operational risks and develop early warning systems. This study investigates bank failures in the Organization for Economic Co-operation and Development, the North America Free Trade Area (NAFTA), the Association of Southeast Asian Nations, the European Union, newly industrialized countries, the G20, and the G8. We use financial ratios to analyze and explore the appropriateness of prediction models. Results show that capital ratios, interest income compared to interest expenses, non-interest income compared to non-interest expenses, return on equity, and provisions for loan losses have significantly negative correlations with bank failure. However, loan ratios, non-performing loans, and fixed assets all have significantly positive correlations with bank failure. In addition, the accuracy of the logistic model for banks from NAFTA countries provides the best prediction accuracy regarding bank failure.

【 授权许可】

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