Explaining Recent Connecticut Bank Failures
AbstractSignificant numbers of U.S. commercial bank failures in the late 1980s and early 1990s raise important questions about bank performance. We develop a failure-prediction model for Connecticut banks to examine events in 1991 and 1992. We adopt data envelopment analysis to derive measures of managerial efficiency. Our findings can be briefly stated. Managerial inefficiency does not provide significant information to explain Connecticut bank failures. Portfolio variables do generally contain significant information.
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 1995-01.
Length: 19 pages
Date of creation: Oct 1995
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