This paper discusses the concept of leverage, its components and how to measure and monitor it. It proposes an innovative approach to assessing leverage based on flows using the concept of a marginal leverage ratio, which reveals the leverage related to new activities, as a valuable supplement...

In this paper we address two important questions that emerged in the aftermath of the recent banking crisis. First, did the financial statements of the bank holding companies provide an early warning of their impending distress? Second, whether the actions of four key financial intermediaries...

Early warning systems are functional and technology driven approaches that draw attention to a number of parameters with activities happening in accounts in order to alert top management of the bank to take timely measure to keep the portfolio healthy. The objectives of an EWS /PMS depends on...