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New evidence on determinants of bank failures in the US

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  • Richard Cebula

Abstract

This study examines determinants of bank failures in the US over the 1963-91 period. The results indicate that the bank failure rate is an increasing function of the degree of federal deposit insurance coverage, increased competition in financial services, and the real cost of deposits, and a decreasing function of the capital/asset ratio, the real interest rate yield on three-year Treasury notes, and real GDP growth.

Suggested Citation

  • Richard Cebula, 1999. "New evidence on determinants of bank failures in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 45-47.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:1:p:45-47
    DOI: 10.1080/135048599353861
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    References listed on IDEAS

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    1. Cebula, Richard, 1992. "The Impact of Federal Deposit Insurance on Savings and Loan Failures," MPRA Paper 51540, University Library of Munich, Germany.
    2. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    3. J. H. Taggart & L. D. Jennings, 1934. "The Insurance of Bank Deposits," Journal of Political Economy, University of Chicago Press, vol. 42, pages 508-508.
    4. Edward J. Kane, 1985. "The Gathering Crisis in Federal Deposit Insurance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262611856, December.
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    Cited by:

    1. Avenir Lleshanaku, 2015. "From the Perspectives of Macroeconomic Factors: The Past and Future of Problematic Loans in Albania," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, March.
    2. Cebula, Richard, 2000. "Determinants of the Rate of Return on Commercial Bank Assets in the United States, 1959-1998," MPRA Paper 60006, University Library of Munich, Germany.
    3. Ramirez, Carlos D., 2003. "Did branch banking restrictions increase bank failures? Evidence from Virginia and West Virginia in the late 1920s," Journal of Economics and Business, Elsevier, vol. 55(4), pages 331-352.

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