Indicative approach to banking crises: case of Russia

Abstract

Authors: Vadim Y. Kiselev vadimkiselev.study@gmail.com

This article presents approach to build indicator for financial instability in the banking sector by constructing the indices of structural changes in its aggregate balance. From our view such approach promotes transformation the concept of banking crises into numerical value. We expect that such indices can be usable for modeling of banking crises in the capacity of  non-discrete proxy variable banking crises.