One of the important questions imposed on economists around the world is whether crises are inevitable,or it is possible to prevent their occurrence.Most studies have shown that banking and currency crises usually do not occur without warning but there are some behavior patterns of certain indicators that are repeating during the period preceding the crisis.Banking crises are more difficult to predict than the currency crises,however,the negative effects on economic activity are far more long-termed after systemic banking crises.Banking crises often occur together with currency and debt crises.Although there are significant differences between the occurred crises,it is possible to identify some common factors of their origin in order to determine indicators which suggest that there is an increased probability of crisis emergence.
　　Within the scope of this study,the banking crisis was identified using by the internationally accepted methodology(the event based method and the index based method)and during the defined distress period using early warning system/indicator to check if the crisis signal is happened/valid or not.
　　The study revealed that the Mongolian economy had twice the crisis in the banking sector from 1999-2001 and 2009-2010.In addition,the banking system has been experiencing signs of trouble since the beginning of 2018.