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Alarming Factors In Predictability Of Failure Of Financial Institutions, Mo Vaziri, Rafiqul Bhuyan, Ponkala Anand Vaseekhar Manuel

International Journal of Business and Technology

The impact of failure of financial institutions is beyond just the failure of a public corporation. The failure of financial institutions in the USA, is a clear evidence that the greater macro impact is beyond just the failure of few financial institutions. It can bring down the entire economy and can have global devastating impact. By realizing the grave systemic risk of the failure, US government is forced to intervene and bail out many institutions for greater macro-economic reasons. It raises the view that perhaps the current regulating policies and methods are lacking efficiency in predicting the possibility of failure …