Establishing the Financial Rating of the Banking System. A European Perspective
Abstract
The present paper develops a methodology for determining the financial rating of the banking system using a panel data from the period 2009 - 2013 for the banking systems of the 28 European Union countries. The methodology consists in determining the extremities of the intervals for each of the financial indicators of the banking system using quartiles analysis, setting the scores for each indicator and determining the category of financial rating for the banking system. Finally, it is presented a classification of the banking systems of the European Union countries, for the period 2009 -2013, based on the financial rating methodology obtained.References
Barker, D., Holdsworth, D. (1993). The Causes of Bank Failures in the 1980s. Research Paper No. 9325, Federal Reserve Bank of New York.
Cole, R.A., Gunther, J.W. (1998). Predicting Bank Failures: A Comparison of On- and Off-Site Monitoring Systems. Journal of Financial Services Research 13, p. 103-117.
Christopoulos, A. G., Mylonakis, J., Diktapanidis, P. (2011). Could Lehman Brothers’ Collapse Be Anticipated? An Examination Using CAMELS Rating System. International Business Research Vol. 4, No. 2.
Federal Deposit Insurance Corporation (1997). Uniform Financial Institutions Rating System. Federal Register ,Vol. 62, No. 3.
Hirtle, B.J., Lopez, J.A. (1999). Supervisory Information and the Frequency of Bank Examinations. Federal Reserve Bank of New York Economic Policy Review 5, p. 1-20.
Nimalathasan, B. (2008). A comparative study of financial performance of banking sector in Bangladesh – An application of CAMELS rating. Annals of University of Bucharest, Economic and Administrative Series, Nr. 2 (2008), p.141-152.
