Author(s)

Yishu Wang, Jing Yang, Zhenjia Liu^*

Department of Accounting, School of Business, Changzhou University, Changzhou, China.

The results suggest that the capital ratio, loan ratio, non-performing loans, provisions for loan losses, fixed assets, return of equity, ratio of interest income to interest expenses, and ratio of non-interest income to non-interest expenses all had different correlations to the financial distress experienced by banks that were at a business life cycle stage. The logistic model employed in this study for predicting bank failure explains most of the banking trends in NIC banks at the declining stage. The accuracy of G8 banks at the growth stage performed well, whereas NIC banks at the declining stage performed poorly.

Bank Failure Prediction, Bank, Global

Wang, Y. , Yang, J. and Liu, Z. (2019) Bank Failure Prediction in Relation to the Business Life Cycle. Modern Economy, 10, 757-777. doi: 10.4236/me.2019.103051.