Capital shortfall: a multicriteria decision support system for the identification of weak banksCapital shortfall: a multicriteria decision support system for the identification of weak banks Peer-Reviewed Journal Publication Δημοσίευση σε Περιοδικό με Κριτές 2022-12-092021enPart of this research was supported through a Fulbright Foundation Greece scholarship and financial support by the National Bank of Greece for M.-P. Tsagkarakis.Following the 2007–2008 global financial crisis, regulators introduced a series of supervisory tools for the closer monitoring of financial institutions. Among them, stress tests and capital exercises performed by the Federal Reserve System (Fed) and the European Banking Authority/European Central Bank (EBA/ECB) play a critical role in the surveillance of the U.S. and the European banking sector. However, due to their nature, these exercises are time consuming. Therefore, we propose the use of a multicriteria based decision support system (DSS) to model and predict the regulatory decisions and outcomes of the above-mentioned exercises. Thus, the proposed approach can be employed by regulators as an early-warning system (EWS) for the continuous, automated, and timely identification of weak banks in need of capitalization, as well as by bank managers and risk analysts as a tool for capital management and strategic planning.http://creativecommons.org/licenses/by/4.0/Decision Support Systems145 Tsagkarakis Minas-Polyvios Τσαγκαρακης Μηνας-Πολυβιος Doumpos Michail Δουμπος Μιχαηλ Pasiouras Fotios Πασιουρας Φωτιος Elsevier Financial stability Stress tests Capital exercises Early-warning systems Multicriteria decision aiding