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Predicting European Bank Distress: Evidence from the Recent Financial Crisis

  • Laura Chiaramonte
  • Federica Poli
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

The global financial crisis has brought a large number of banks to the brink of collapse, including several European banks1, stressing the importance of detecting early signals of bank distress in order to activate prompt corrective actions. Indeed, identifying weak banks early is crucial, especially when problems are identified late, as solving them is much more costly. So in light of this, it becomes critically important to make use of data and indicators that can help supervisors and investors to discover which financial institutions are at risk of distress.

Keywords

Credit Default Swap Crisis Period Market Discipline Bank Risk Credit Default Swap Spread 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Laura Chiaramonte and Federica Poli 2014

Authors and Affiliations

  • Laura Chiaramonte
  • Federica Poli

There are no affiliations available

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