IMF Working Papers

Can Financial Soundness Indicators Help Predict Financial Sector Distress?

By Marcin Pietrzak

July 23, 2021

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Format: Chicago

Marcin Pietrzak. Can Financial Soundness Indicators Help Predict Financial Sector Distress?, (USA: International Monetary Fund, 2021) accessed November 24, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper shows how the role of Financial Soundness Indicators (FSIs) in financial surveillance can be usefully enhanced. Drawing from different statistical techniques, the paper illustrates that FSIs generate signals that can accurately detect, with 4 to 12 quarters lead, emerging financial distress—as measured by tight financial conditions.

Publication Details

  • Pages:

    55

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2021/197

  • Stock No:

    WPIEA2021197

  • ISBN:

    9781513593005

  • ISSN:

    1018-5941