Sistemas de Alterta Temprana para Identificar Bancos en Problemas: Aplicacion al Caso Costarricense
Creators:Camacho, Arnoldo R.
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2138
This paper examines the importance of effective early warning systems for the prudential supervision of financial intermediaries. Discriminant analysis is used to identify atypical institutions among the Costa Rican private banks. Chi-square tests are used for 1987-1991. The effectiveness of the method is demonstrated by its ability to predict problems in banks that eventually went bankrupt, much earlier than when the authorities had perceived any difficulties.