Bank Distress in the European Union 2008-2015: A General Assessment

46 Pages Posted: 8 Jul 2018 Last revised: 4 Oct 2018

See all articles by Panayiotis Ioannou

Panayiotis Ioannou

Independent

Stelios Markoulis

University of Cyprus - Department of Public and Business Administration; Frederick University; Cyprus International Institute of Management (CIIM)

Spiros Martzoukos

University of Cyprus - Department of Public and Business Administration; George Washington University - School of Business

Date Written: June 17, 2018

Abstract

This paper focuses on EU banks that experienced distress during 2008-2015 and provides evidence regarding bank-specific, macroeconomic, and stock market variables and the probability of distress. The sample employed is unique in terms of the definition of distress. Results indicate that a combination of the above explains the probability of distress well, emphasizing the importance of the simple equity ratio and size. The paper also focuses on banks in EU countries that faced economic problems and documents that the probability of bank distress in these countries has been influenced by different factors, in comparison to the rest of the EU.

Keywords: Bank Distress, CAMELS, European Union Banks, Size, Revenue Diversification

JEL Classification: G01, G21, G33

Suggested Citation

Ioannou, Panayiotis and Markoulis, Stelios and Martzoukos, Spiros Harilaos Spiridon, Bank Distress in the European Union 2008-2015: A General Assessment (June 17, 2018). Available at SSRN: https://ssrn.com/abstract=3197850 or http://dx.doi.org/10.2139/ssrn.3197850

Panayiotis Ioannou

Independent ( email )

No Address Available

Stelios Markoulis (Contact Author)

University of Cyprus - Department of Public and Business Administration ( email )

75 Kallipoleos Street
P.O. Box 20537
Nicosia CY-1678
CYPRUS

Frederick University ( email )

7, Y. Frederickou Str.
Pallouriotisa
Nicosia, 1036
Cyprus

Cyprus International Institute of Management (CIIM) ( email )

P.O Box 20378
Aglandjia
Nicosia, CY-2151
Cyprus

Spiros Harilaos Spiridon Martzoukos

University of Cyprus - Department of Public and Business Administration ( email )

75 Kallipoleos Street
P.O. Box 20537
Nicosia CY-1678
CYPRUS
357-2-892474 (Phone)
357-2-892460 (Fax)

George Washington University - School of Business

Washington, DC 20052
United States
202-994-5996 (Phone)
202-994-5014 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
13
Abstract Views
151
PlumX Metrics