Predicting bank insolvency in the Middle East and North Africa

Jul 31, 2014 | P. Calice | The World Bank
This paper uses a panel of annual observations for 198 banks in 19 Middle East and North Africa countries over 2001–12 to develop an early warning system for forecasting bank insolvency based on a multivariate logistic regression framework. The results show that the traditional CAMEL indicators are significant predictors of bank insolvency in the region.