Distance-to-default indicator applied to Finnish banks
Lehto, Jaakko (22.09.2005)
Numero
3
2005
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408074896Tiivistelmä
The distance-to-default indicator is a measure of a company's default risk. The indicator, which captures market outlook, has generated interest in connection with private sector risk management as well as banks' stability analysis. The predictive properties of the indicator are enhanced by the fact that it is based on market prices of shares.