Abstract:

The authors have put forward a hypothesis that if microeconomic indicators are added to an integrated model for assessing the financial status of a bank, the survival capacity of the bank can be predicted in a better way.  The paper presents a multifactorial model in which, apart from inclusion of additional (macroeconomic) factors, the problem of multicollinearity of variables has been solved. The results of testing the author methodology on the existing banks and bankrupt banks are presented. A high predictive capacity of the model is proved.