Investigating the Early Signals of Banking Sector Vulnerabilities in Central and East European Emerging Markets

Kadri Männasoo () and David G. Mayes ()

No 2005-08, Bank of Estonia Working Papers from Bank of Estonia

Abstract: This paper considers the joint role of macro-economic and bankspecific factors in explaining the occurrence of banking problems in the twenty-one Central and East European emerging markets over the recent decade. Using data at the individual bank level we show, using a logit model, that the macroeconomic factors play a central role in determining banking sector instability in the early stages of difficulty, while the bankspecific factors are more important in the later stages and gain more weight as the banking sector develops and the institutional framework becomes mature.

Keywords: banking sector vulnerability; banking crises; early warning indicators; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: E44 G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-eec, nep-fin, nep-fmk, nep-mac and nep-tra
Date: 2005-10-10, Revised 2005-10-10
View list of references

Published

Downloads: (external link)
http://www.eestipank.info/pub/en/dokumendid/publik ... /_8_2005/_wp_805.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eea:boewps:wp2005-08

Ordering information: This working paper can be ordered from
Estonia bld. 13, 15095 Tallinn, ESTONIA

Access Statistics for this paper

More papers in Bank of Estonia Working Papers from Bank of Estonia
Address: Estonia bld. 13, 15095 Tallinn, ESTONIA
Contact information at EDIRC.
Series data maintained by Peeter Luikmel ().