Financial Failure Prediction in Banks: The Case of European Union Countries
Financial crisis in 2007, affecting the whole world, revealed the significance of early prediction of distressed banks and companies, and subsequently research on financial distress prediction in the banking sector accelerated considerably. This study estimates the financial failure of banks and...
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| Format: | Article |
| Language: | English |
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Isarder
2018-06-01
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| Series: | İşletme Araştırmaları Dergisi |
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| Online Access: | https://isarder.org/2018/vol.10_issue.2_article30_full_text.pdf |
| Summary: | Financial crisis in 2007, affecting the whole world, revealed the significance of
early prediction of distressed banks and companies, and subsequently research on
financial distress prediction in the banking sector accelerated considerably. This study
estimates the financial failure of banks and looks at the factors related to bank failure
using a five-stage empirical model based on panel data for the 1990-2010 period, for
banks operating in 27 European Union (EU) countries. Using a panel logit model to
determine which of the independent variables led to the bank failure, it is observed that
“Non-interest Income to Total Income” is the best predictor. |
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| ISSN: | 1309-0712 1309-0712 |