01799cas a2200253 a 4500 AALejournalIMF009683 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868388 1018-5941 BD-DhAAL BD-DhAAL Cihak, Martin. How Well Do Aggregate Bank Ratios Identify Banking Problems? / Martin Cihak, Klaus Schaeck. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper provides an empirical analysis of aggregate banking system ratios during systemic banking crises. Drawing upon a wide cross-country dataset, we utilize parametric and nonparametric tests to assess the power of these ratios to discriminate between sound and unsound banking systems. We also estimate a duration model to investigate whether the ratios help determine the timing of a banking crisis. Despite some weaknesses in the available data, our findings offer initial evidence that some indicators are precursors for the likelihood and timing of systemic banking problems. Nevertheless, we caution against sole reliance on these indicators and advocate supplementing them with other tools and techniques. Mode of access: Internet Schaeck, Klaus. IMF Working Papers; Working Paper ; No. 2007/275 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/275/001.2007.issue-275-en.xml IMF e-Library