01746cas a2200241 a 4500 AALejournalIMF015854 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513511030 1018-5941 BD-DhAAL BD-DhAAL Kerry, Will. Finding the Bad Apples in the Barrel : Using the Market Value of Equity to Signal Banking Sector Vulnerabilities / Will Kerry. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (29 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 This paper measures the performance of different metrics in assessing banking system vulnerabilities. It finds that metrics based on equity market valuations of bank capital are better than regulatory capital ratios, and other metrics, in spotting banks that failed (bad apples). This paper proposes that these market-based ratios could be used as a surveillance tool to assess vulnerabilities in the banking sector. While the measures may provide a somewhat fuzzy signal, it is better to have a strategy for identifying bad apples, even if sometimes the apples turn out to be fine, than not being able to spot any bad apples before the barrel has been spoiled. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/180 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/180/001.2019.issue-180-en.xml IMF e-Library