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.
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