Since the Great Financial Crisis, emerging market economies (EMEs) have made much progress on enhancing their frameworks to manage banking crises. Yet significant challenges remain. Banking sectors and bank ownership are more concentrated in EMEs than in advanced ecomonies (AEs), and banks fund...

This paper develops an analytical framework that can be used to anticipate problems in the banking system and enable supervisors to take mitigating actions at an early stage. This paper has two components. First, it develops an early warning indicator that is intended to capture a number of the...