Early Warning Systems for banking crises: political and economic stability
Early Warning System (EWS) is a system that tries to predict the probability of crises using environmental factors. This study seeks to develop an EWS for the probability of systemic banking crises in East Asian countries by using a logit model taking into account a wide range of political and eco...
Saved in:
Main Authors: | , , , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Penerbit Universiti Kebangsaan Malaysia
2016
|
Online Access: | http://journalarticle.ukm.my/10777/1/jeko_50%282%29-3.pdf http://journalarticle.ukm.my/10777/ http://www.ukm.my/fep/jem/content/2016-2.html |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my-ukm.journal.10777 |
---|---|
record_format |
eprints |
spelling |
my-ukm.journal.107772017-10-10T09:37:21Z http://journalarticle.ukm.my/10777/ Early Warning Systems for banking crises: political and economic stability Tamadonejad, Alireza Mariani Abdul-Majid, Aisyah Abdul-Rahman, Mansor Jusoh, Razieh Tabandeh, Early Warning System (EWS) is a system that tries to predict the probability of crises using environmental factors. This study seeks to develop an EWS for the probability of systemic banking crises in East Asian countries by using a logit model taking into account a wide range of political and economic factors. Results reveal that short-term debt and exchange rate depreciation may trigger speculative attacks during political instability, economic slowdown, and inefficient regulatory environments. Policymakers and regulators may be able to prevent crises by stabilizing political and economic conditions. Furthermore, results indicate that government instability, corruption, high short-term debt, unstable monetary and fiscal policies do not only reduce investors’ confidence but also prevent effective crisis prevention strategies. Therefore, by adopting the EWS the government would be able to monitor environmental changes causing crises. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10777/1/jeko_50%282%29-3.pdf Tamadonejad, Alireza and Mariani Abdul-Majid, and Aisyah Abdul-Rahman, and Mansor Jusoh, and Razieh Tabandeh, (2016) Early Warning Systems for banking crises: political and economic stability. Jurnal Ekonomi Malaysia, 50 (2). pp. 31-38. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2016-2.html |
institution |
Universiti Kebangsaan Malaysia |
building |
Perpustakaan Tun Sri Lanang Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
Universiti Kebangsaan Malaysia |
content_source |
UKM Journal Article Repository |
url_provider |
http://journalarticle.ukm.my/ |
language |
English |
description |
Early Warning System (EWS) is a system that tries to predict the probability of crises using environmental factors.
This study seeks to develop an EWS for the probability of systemic banking crises in East Asian countries by using a
logit model taking into account a wide range of political and economic factors. Results reveal that short-term debt
and exchange rate depreciation may trigger speculative attacks during political instability, economic slowdown, and
inefficient regulatory environments. Policymakers and regulators may be able to prevent crises by stabilizing political
and economic conditions. Furthermore, results indicate that government instability, corruption, high short-term debt,
unstable monetary and fiscal policies do not only reduce investors’ confidence but also prevent effective crisis prevention
strategies. Therefore, by adopting the EWS the government would be able to monitor environmental changes causing crises. |
format |
Article |
author |
Tamadonejad, Alireza Mariani Abdul-Majid, Aisyah Abdul-Rahman, Mansor Jusoh, Razieh Tabandeh, |
spellingShingle |
Tamadonejad, Alireza Mariani Abdul-Majid, Aisyah Abdul-Rahman, Mansor Jusoh, Razieh Tabandeh, Early Warning Systems for banking crises: political and economic stability |
author_facet |
Tamadonejad, Alireza Mariani Abdul-Majid, Aisyah Abdul-Rahman, Mansor Jusoh, Razieh Tabandeh, |
author_sort |
Tamadonejad, Alireza |
title |
Early Warning Systems for banking crises: political and economic stability |
title_short |
Early Warning Systems for banking crises: political and economic stability |
title_full |
Early Warning Systems for banking crises: political and economic stability |
title_fullStr |
Early Warning Systems for banking crises: political and economic stability |
title_full_unstemmed |
Early Warning Systems for banking crises: political and economic stability |
title_sort |
early warning systems for banking crises: political and economic stability |
publisher |
Penerbit Universiti Kebangsaan Malaysia |
publishDate |
2016 |
url |
http://journalarticle.ukm.my/10777/1/jeko_50%282%29-3.pdf http://journalarticle.ukm.my/10777/ http://www.ukm.my/fep/jem/content/2016-2.html |
_version_ |
1643738251905728512 |
score |
13.160551 |