2015-09-28

NDIC Early Warning Signal for Bank Failure Prediction

The NDIC (Nigeria Deposit Insurance Corporation) has developed a new Early Warning System (EWS) to better predict bank failures in Nigeria. This system aims to overcome the shortcomings of the existing eFASS EWS, which relies on financial ratios and peer group analysis. The new EWS uses statistical, econometric, and artificial intelligence techniques, incorporating both regulatory information and market data. It is forward-looking, enables stress testing, and considers the dynamic nature of the industry and the economy, aiming to provide more accurate and timely warnings of potential bank failures.

Nigeria

Nigeria Deposit Insurance Corporation

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