IDENTIFICATION AND INVESTIGATION OF THE FIRST SIGNS OF GLOBAL FINANCIAL CRISES IN BANKS’ FINANCIAL STATEMENTS

Abstract

The article examines the relevance of the topic and describes the characteristics of financial crises: analyzes the relationship between business cycles and financial crises, classifies financial crises into speculative bubbles, currency and banking crises, and examines the causality of specific types of crises. The concept of liquidity in the financial sector and the importance of this liquidity in preventing financial crises are also examined. The article discusses the impact of the central bank on the stability of the financial system and describes the rates and requirements that the central bank applies to financial sector institutions in order to maintain sufficient liquidity. According to the established norms, applying EDAS method and cluster analysis, different Lithuanian and world banks are compared and ranked, and the causality of the obtained results is sought.