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Excess Credit Risk and Banks’ Default Risk: An Application of Default Prediction Models to Banks in Emerging Market Economies

  • Christophe J. Godlewski
Part of the Centre for the Study of Emerging Markets Series book series (CSEM)

Abstract

The last 20 years have witnessed several bank failures throughout the world, particularly in emerging market economies (EMEs) (Bell and Pain, 2000).The interest in bank failures comes mainly from their costs: financial losses for the stakeholders (shareholders, clients and deposit insurance funds),loss of competitiveness and potential destabilization of the financial system via contagion mechanisms, whereby several individual failures lead to a banking crisis. The resolution of these failures is a waste of resources, which are particularly scarce in EMEs (Honohan, 1997).1

Keywords

Corporate Governance Federal Reserve Excess Risk Default Risk Deposit Insurance 
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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© Contributors 2005

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  • Christophe J. Godlewski

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