Advanced Search
MyIDEAS: Login to save this article or follow this journal

FDIC losses in bank failures: has FDICIA made a difference?

Contents:

Author Info

  • George P. Kaufman
Registered author(s):

    Abstract

    This article finds that, although the number of failed banks declined sharply after the passage of the FDIC Improvement Act (FDICIA) in 1991, losses to the FDIC as a percent of assets of failed banks actually increased. Only if adjustments are made both for large losses at a few larger outlier banks and for differences in the size distribution of failures is the FDIC's loss rate in the post-FDICIA period (1993-2002) reduced to below its pre-FDICIA (1980-92) rate.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2004/ep_3qtr2004_p2_Kaufman.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

    Volume (Year): (2004)
    Issue (Month): Q III ()
    Pages: 13-25

    as in new window
    Handle: RePEc:fip:fedhep:y:2004:i:qiii:p:13-25:n:v.28no.3

    Contact details of provider:
    Postal: P.O. Box 834, 230 South LaSalle Street, Chicago, Illinois 60690-0834
    Phone: 312/322-5111
    Fax: 312/322-5515
    Email:
    Web page: http://www.chicagofed.org/
    More information through EDIRC

    Order Information:
    Email:
    Web: http://www.chicagofed.org/webpages/publications/print_publication_order_form.cfm

    Related research

    Keywords: Bank failures ; Federal Deposit Insurance Corporation ; Federal Deposit Insurance Corporation Improvement Act of 1991;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Barth, James R & Bartholomew, Philip F & Bradley, Michael, 1990. " Determinants of Thrift Institution Resolution Costs," Journal of Finance, American Finance Association, vol. 45(3), pages 731-54, July.
    2. George J. Benston & George G. Kaufman, 1998. "Deposit insurance reform in the FDIC Improvement Act: the experience to date," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-20.
    3. Ely, David P. & Varaiya, Nikhil P., 1996. "Opportunity costs incurred by the RTC in cleaning up S&L insolvencies," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(3), pages 291-310.
    4. John R. Walter, 2004. "Closing troubled banks : how the process works," Economic Quarterly, Federal Reserve Bank of Richmond, issue Win, pages 51-68.
    5. Robert A. Eisenbeis & Larry D. Wall, 2002. "The major supervisory initiatives post-FDICIA: Are they based on the goals of PCA? Should they be?," Working Paper 2002-31, Federal Reserve Bank of Atlanta.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Sorana Vătavu & Marilen Pirtea & Sorin Vătavu, 2011. "A Review of Financial Regulations to Avoid the Nationalisation of Losses in the Banking System," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(1), pages 277-288.
    2. Robert A. Eisenbeis & W. Scott Frame & Larry D. Wall, 2004. "Resolving large financial intermediaries: banks versus housing enterprises," Working Paper 2004-23, Federal Reserve Bank of Atlanta.
    3. ap Gwilym, Rhys & Kanas, Angelos & Molyneux, Philip, 2013. "U.S. prompt corrective action and bank risk," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 26(C), pages 239-257.
    4. Robert R. Bliss & George Kaufman, 2006. "U.S. corporate and bank insolvency regimes: an economic comparison and evaluation," Working Paper Series WP-06-01, Federal Reserve Bank of Chicago.
    5. Gillian G.H. Garcia & Rosa M. Lastra & María J. Nieto, 2009. "Bankruptcy and reorganization procedures for cross-border banks in the EU: Towards an integrated approach to the reform of the EU safety net," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 17(3), pages 240-276, July.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fip:fedhep:y:2004:i:qiii:p:13-25:n:v.28no.3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernie Flores).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.