Early Warning Indicators of Banking Crisis in Asian Countries



Summary

This paper aims to test the relevance of the advanced warning indicators in the prediction of systemic banking crises in 6 Asian emerging countries over the period 1973-2012. Based on multivariate panel logit model, our empirical results suggest that among 6 determinants of banking crises ranged into macroeconomic, financial and external variables, inflation demonstrates the most significant predictive power on systemic banking crises.


Keywords

banking crises, early warning system, panel logit regression