FRIM : A New Tool for Financial Risk Monitoring and MENA
Recent episodes of global financial stress have underscored the importance of individual banks to the stability of their own or even the global financial system. Against this backdrop and to respond to the need of World Bank Group staff for a wider...
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| Format: | Brief |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/08/20145284/frim-new-tool-financial-risk-monitoring-mena http://hdl.handle.net/10986/20545 |
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okr-10986-205452021-04-23T14:03:56Z FRIM : A New Tool for Financial Risk Monitoring and MENA Calice, Pietro ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANY ASSET PORTFOLIO ASSET RATIO BALANCE SHEET BALANCE SHEETS BANK INSOLVENCY BANK RISK BANK RUN BANKING CRISES BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS CAPITALIZATION CAR CORPORATE GOVERNANCE CORPORATE GOVERNANCE ARRANGEMENTS CORPORATE GOVERNANCE STANDARDS DEPOSITS DOMESTIC BANK EARLY WARNING EARLY WARNING SYSTEM EARNING ASSETS ECONOMIC GROWTH FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL RISK FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS INCOME STATEMENTS INDIVIDUAL BANK INDIVIDUAL BANKS INSOLVENCY INSOLVENCY RISK INTEREST INCOME LEVERAGE LIABILITY LIQUID ASSETS LIQUIDITY LIQUIDITY POSITION LOAN LOAN LOSS LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO NONPERFORMING LOANS NUMBER OF BANKS OWNERSHIP STRUCTURES PRIVATE BANKS PROBABILITY OF INSOLVENCY PROFITABILITY PROXY RECAPITALIZATION RETURN ON ASSETS RISK OF INSOLVENCY SYSTEMIC BANKING DISTRESS Recent episodes of global financial stress have underscored the importance of individual banks to the stability of their own or even the global financial system. Against this backdrop and to respond to the need of World Bank Group staff for a wider diagnostic toolkit, we have developed the BRI, an icon set in the form of a traffic light to enable preliminary analyses of individual banks' financial soundness in the region, and an Excelbased spreadsheet tool (FRIM) to facilitate its calculation and presentation. A back-test based on actual developments in the Tunisian banking system suggests that the BRI is able to accurately differentiate banks according to their financial health. The impact of the global financial crisis on banking systems and banks in the Middle East and North Africa (MENA) has highlighted the importance of differentiating across countries and among financial institutions. While the region avoided systemic banking distress, the crisis had a stronger impact on countries in the Gulf Cooperation Council, where financial systems were more globally integrated and banks more overextended. Countries elsewhere in the region, including transition countries, weathered the crisis better. However, protracted economic weakness is likely to have a significant impact on several banking systems and banks, which can have profound consequences for credit intermediation and ultimately economic growth and job creation. This underscores the need for better tools to monitor financial risk and vulnerabilities in MENA. 2014-11-19T15:50:19Z 2014-11-19T15:50:19Z 2014-08 http://documents.worldbank.org/curated/en/2014/08/20145284/frim-new-tool-financial-risk-monitoring-mena http://hdl.handle.net/10986/20545 English en_US MENA knowledge and learning quick notes series;no. 131 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Brief Publications & Research Middle East and North Africa North Africa Middle East |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANY ASSET PORTFOLIO ASSET RATIO BALANCE SHEET BALANCE SHEETS BANK INSOLVENCY BANK RISK BANK RUN BANKING CRISES BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS CAPITALIZATION CAR CORPORATE GOVERNANCE CORPORATE GOVERNANCE ARRANGEMENTS CORPORATE GOVERNANCE STANDARDS DEPOSITS DOMESTIC BANK EARLY WARNING EARLY WARNING SYSTEM EARNING ASSETS ECONOMIC GROWTH FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL RISK FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS INCOME STATEMENTS INDIVIDUAL BANK INDIVIDUAL BANKS INSOLVENCY INSOLVENCY RISK INTEREST INCOME LEVERAGE LIABILITY LIQUID ASSETS LIQUIDITY LIQUIDITY POSITION LOAN LOAN LOSS LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO NONPERFORMING LOANS NUMBER OF BANKS OWNERSHIP STRUCTURES PRIVATE BANKS PROBABILITY OF INSOLVENCY PROFITABILITY PROXY RECAPITALIZATION RETURN ON ASSETS RISK OF INSOLVENCY SYSTEMIC BANKING DISTRESS |
| spellingShingle |
ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANY ASSET PORTFOLIO ASSET RATIO BALANCE SHEET BALANCE SHEETS BANK INSOLVENCY BANK RISK BANK RUN BANKING CRISES BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKS CAPITALIZATION CAR CORPORATE GOVERNANCE CORPORATE GOVERNANCE ARRANGEMENTS CORPORATE GOVERNANCE STANDARDS DEPOSITS DOMESTIC BANK EARLY WARNING EARLY WARNING SYSTEM EARNING ASSETS ECONOMIC GROWTH FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL RISK FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS INCOME STATEMENTS INDIVIDUAL BANK INDIVIDUAL BANKS INSOLVENCY INSOLVENCY RISK INTEREST INCOME LEVERAGE LIABILITY LIQUID ASSETS LIQUIDITY LIQUIDITY POSITION LOAN LOAN LOSS LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO NONPERFORMING LOANS NUMBER OF BANKS OWNERSHIP STRUCTURES PRIVATE BANKS PROBABILITY OF INSOLVENCY PROFITABILITY PROXY RECAPITALIZATION RETURN ON ASSETS RISK OF INSOLVENCY SYSTEMIC BANKING DISTRESS Calice, Pietro FRIM : A New Tool for Financial Risk Monitoring and MENA |
| geographic_facet |
Middle East and North Africa North Africa Middle East |
| relation |
MENA knowledge and learning quick notes
series;no. 131 |
| description |
Recent episodes of global financial
stress have underscored the importance of individual banks
to the stability of their own or even the global financial
system. Against this backdrop and to respond to the need of
World Bank Group staff for a wider diagnostic toolkit, we
have developed the BRI, an icon set in the form of a traffic
light to enable preliminary analyses of individual
banks' financial soundness in the region, and an
Excelbased spreadsheet tool (FRIM) to facilitate its
calculation and presentation. A back-test based on actual
developments in the Tunisian banking system suggests that
the BRI is able to accurately differentiate banks according
to their financial health. The impact of the global
financial crisis on banking systems and banks in the Middle
East and North Africa (MENA) has highlighted the importance
of differentiating across countries and among financial
institutions. While the region avoided systemic banking
distress, the crisis had a stronger impact on countries in
the Gulf Cooperation Council, where financial systems were
more globally integrated and banks more overextended.
Countries elsewhere in the region, including transition
countries, weathered the crisis better. However, protracted
economic weakness is likely to have a significant impact on
several banking systems and banks, which can have profound
consequences for credit intermediation and ultimately
economic growth and job creation. This underscores the need
for better tools to monitor financial risk and
vulnerabilities in MENA. |
| format |
Publications & Research :: Brief |
| author |
Calice, Pietro |
| author_facet |
Calice, Pietro |
| author_sort |
Calice, Pietro |
| title |
FRIM : A New Tool for Financial Risk Monitoring and MENA |
| title_short |
FRIM : A New Tool for Financial Risk Monitoring and MENA |
| title_full |
FRIM : A New Tool for Financial Risk Monitoring and MENA |
| title_fullStr |
FRIM : A New Tool for Financial Risk Monitoring and MENA |
| title_full_unstemmed |
FRIM : A New Tool for Financial Risk Monitoring and MENA |
| title_sort |
frim : a new tool for financial risk monitoring and mena |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/08/20145284/frim-new-tool-financial-risk-monitoring-mena http://hdl.handle.net/10986/20545 |
| _version_ |
1764445754952253440 |