Predicting Bank Failure: Evidence from Turkey and West African Economic and Monetary Union (WAEMU)

Abstract

The study analyzes the factors that may have an impact on the banking sector, particularly the ones which could be useful to predict the financial failure of banks. The study compares and contrasts the banking systems of Turkey and West African countries where the main actor in financial system occurs to be the banks. First, it has been found that (equity + profit)/total assets, fixed assets/total assets, operating expenses/total assets, (personnel expenses + severance pay)/total assets ratios are effective in estimating of financial failure of banks in Turkey. Second, Net Period profit/Average equity and Interest income/ Average Earning assets ratio are effective in prediction of financial failure of banks in the West African Economic and Monetary Union. The study suggests that to determine financial failure of banks, various financial ratios play a fairly consequential role for a variety of countries.

Authors and Affiliations

Eda OrucErdogan1, Kokou Adalessossi

Keywords

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  • EP ID EP314563
  • DOI -
  • Views 70
  • Downloads 0

How To Cite

Eda OrucErdogan1, Kokou Adalessossi (2017). Predicting Bank Failure: Evidence from Turkey and West African Economic and Monetary Union (WAEMU). The International Journal of Social Sciences and Humanities Invention, 4(3), -. https://europub.co.uk/articles/-A-314563