Déjà Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around
AbstractIn this study, we analyze why U.S. commercial banks failed during the recent financial crisis. We find that proxies for commercial real estate investments, as well as traditional proxies for the CAMELS components, do an excellent job in explaining the failures of banks that were closed during 2009, just as they did in the previous banking crisis of 1985 â 1992. Surprisingly, we do not find that residential mortgage-backed securities played a significant role in determining which banks failed and which banks survived.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Financial Services Research.
Volume (Year): 42 (2012)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102934
Bank; Bank failure; CAMELS; Commercial real estate; FDIC; Financial crisis; Mortgage-backed security; Risk-based capital; Risk weights; G17; G21; G28;
Other versions of this item:
- Cole, Rebel A. & White, Lawrence J., 2010. "Déjà vu all over again: The causes of U.S. commercial bank failures this time around," MPRA Paper 24690, University Library of Munich, Germany, revised 28 Jul 2010.
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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