On October 25, 2010, a Mw = 7.7 magnitude earthquake was recorded in the Kepulauan Mentawai archipelago, in Indonesia. Following the earthquake, the Pacific Tsunami Warning Center issued a tsunami bulletin to the countries of the Indian Ocean informing them that a local tsunami watch was in...

Natural disasters, particularly those triggered by heavy rainfall, may cause major damage and death. However, if an accurate early warning is issued, the damage can be mitigated. In Latin America and Brazil, characteristics of socioeconomic development often lead to a disorderly growth of cities...

The objective of this paper is to propose an early warning system that can predict the likelihood of the occurrence of financial stress events within a given period of time. To achieve this goal, the signal extraction approach proposed by Kaminsky et al. (1998) is used to monitor the evolution...

In this paper, we examine a markets’ readiness for potential disruptive innovations based on past and current conditions. For this purpose, we developed a theoretical framework to evaluate the “disruptive susceptibility” of value networks. Using the construct of disruptive susceptibility,...

The paper presents an econometric study of the two bank ratings assigned by Moody's Investors Service. According to Moody’s methodology, foreign-currency long-term deposit ratings are assigned on the basis of Bank Finan-cial Strength Ratings (BFSR), taking into account “external bank support...

In this paper we propose an early warning system for the Romanian banking sector, as an addition to the standardized CAAMPL rating system used by the National Bank of Romania for assessing the local credit institutions. We aim to find the determinants for downgrades as well as for a bank to have...

In this paper, we realise an early warning system for hedge funds based on specific red flags that help detect the symptoms of impending extreme negative returns and the contagion effect. To do this we use regression tree analysis to identify a series of splitting rules that act as risk signals....

This paper examines the impact of the recent global crisis on emerging market economies (EMs). Our cross-country analysis shows that the impact of the crisis was more pronounced in those EMs that had initial weaker fundamentals and greater financial and trade linkages. This effect is observed...

The paper will examine the 1994 and 2001 Turkish currency crises by using early warning system which is based on the “signal” approach proposed by Kaminsky, Lizondo and Reinhart (KLR) (1998). The “signal” approach is a non-parametric approach. In this approach, the behavior of a number...