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Market Brief - Africa Economic Financial Brief 9-13 December 2013
For at least two decades, central banks have been using various Early Warning Systems (EWS) to monitor the risk of bank runs and failures. However, the repeated occurrence of banking crises during this period including the Asian crisis, the Russian bank crisis the Brazilian bank crisis and the most recent global financial crisis are testament to the difficulty of the ability to predict crises and subsequently safeguarding the banking system. However, these historic episodes of financial crises have highlighted a pressing need for modifying the methods for predicting banking crises.