Distance-to-default indicator applied to Finnish banks
Lehto, Jaakko (22.09.2005)
JulkaisusarjaBank of Finland. Financial Market Report
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408074896
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.