Identifying "problem banks" in the German co-operative and savings bank sector: an econometric analysis

摘要: This paper provides the first econometric analysis of problem banks in Germany. Drawing on an original dataset distressed co-operative and savings banks, we develop early warning indicators for banking difficulties using a parametric approach. Taking idiosyncratic characteristics German sector into account controlling microeconomic variables, evaluate as to whether bank type location matter. Findings indicate that West Germany are less risky than credit institutions Neue Lander co-operatives more prone experience financial banks. We conclude model combines both is sufficient identify up three years prior surfacing distress.