Machine learning can help spot bank distress – BoE paper
Machine learning (ML) models can help to build early-warning indicators of bank distress, researchers says in a new Bank of England working paper, published today (October 4).
In Predicting bank distress in the UK with machine learning, Joel Suss and Henry Treitel draw on confidential supervisory assessments of firm risk. They say this gives them an earlier insight into when a firm is deemed high risk. Other researchers have tended to focus on banks that have suffered “outright failure”.
They
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Economic modelling
Agent-based models shed light on CBDC dynamics
Take-up could be as high as 25% of total money, but depends on design choices, IMF research finds
Wanted: radical ideas for inflation modelling
Hedge funds echo Mervyn King’s calls for a new approach to inflation modelling post-2022 crisis
Bank of Thailand governor calls for better inflation model
Phillips curve model under-predicts inflation, argues governor Sethaput
Christopher Sims on modelling the inflation surge
Unprecedented shocks creates major challenges for forecasters, the Nobel prize-winning economist says
IMF publishes sober outlook for 2023
“Worst is yet to come”, says chief economist
IMF paper offers ‘fear-based theory’ of economy
Central banks risk distorting the economy if they don’t move interest rates to offset “fear cycle”
RBA’s Lowe admits inflation models need rethink
Governor acknowledges forecasting mistakes but rejects calls to resign
Modelling the short-term economic impacts of climate change
Econometric models can give central banks a clearer picture of short-term climate impacts, says Stephen Millard