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Early Warning Indicators for the German Banking System: A Macroprudential Analysis

Year:    2014

Author:    Kick, Thomas, Jahn, Nadya

Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 1 : pp. 5–47

Abstract

In this paper, we introduce a continuous and forward-looking stability indicator for the banking system based on information on all financial institutions in Germany between 1995 and 2010. Explaining this indicator by means of panel regression techniques, we identify significant macroprudential early warning indicators (such as asset price indicators, leading indicators for the business cycle and monetary indicators) and spillover effects. International spillovers play a significant role across all banking sectors, whereas regional spillovers and the credit-to-GDP ratio are more important for cooperative banks and less relevant for commercial banks.

Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/ccm.47.1.5

Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 1 : pp. 5–47

Published online:    2014-03

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    43

Keywords:    C23 E44 G01 G21 Early Warning Indicators Banking System Stability Indicator Spill-over Effects Panel Regression Techniques

Author Details

Kick, Thomas

Jahn, Nadya

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