The Efficacy of Early Warning Systems Finance Essay
This document examines the efficacy of early warning systems with respect to predicting incipient financial distress of banking institutions. Their practical use by policy makers is limited, even in the international financial institutions. This is a paradox since the changing nature of banking risks as more economies liberalise and develop their financial systems, as well as ongoing innovation, makes the use of EWS for informing policies aimed at preventing crises more necessary than ever. A model of banks with different […]