Finland paper: Loans-to-deposits among best indicators of banking crises
Growth rates and trend deviations of loan stock variables can signal crises
Loans-to-deposits and house price growth are the strongest indicators of systemic banking crises in Europe, according to a Bank of Finland discussion paper.
Leading indicators of systemic banking crises: Finland in a panel of EU countries, by Patrizio Lainà, Juho Nyholm and Peter Sarlin, uses quarterly data from 1980 to 2013 to investigate the leading indicators of systemic banking crises in a panel of 11 European Union countries, with a particular focus on Finland.
Using univariate signal
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