Bank Failure Forecasting Tool

This tool evaluates a bank's financial stability using the linear Support Vector Machine (SVM) decision boundary optimized by Gogas, Papadimitriou, and Agrapetidou (2018). Input values from the bank's most recent statement below.

1. Capital Adequacy Indicators (Balance Sheet)

Tier 1 (Core) Capital ($) Core equity, common stock, and retained earnings.

Total Assets ($) The total balance sheet size asset volume.

2. Operating Margin Leverage Indicators (Income Statement)

Total Interest Expense ($) Interest paid to depositors and corporate debt liabilities.

Total Interest Income ($) Interest earned from loans, mortgages, and securities.

Calculated Values & Scaling Breakdown:

Decision Mapping Space (Linear Margin Visualizer)

Solvent Subspace Insolvent Subspace ✖ Your Bank Point

Methodology Note: The straight line mapped on the canvas represents the optimized hyperplane boundary separating healthy firms from failures. The distance ($d(B)$) represents the perpendicular safety buffer zone metric calculated via Lagrange multipliers context scaling[cite: 145, 485, 500]. The dynamic matrix evaluates the formula:
$$\epsilon: 23.45 \times T1CRC - 3.85 \times TIE + 10.55 = -0.7$$ [cite: 467]